 The preferred shares of a split share corporation are intended to provide an investment vehicle for more conservative investors, one that provides a relatively high income stream and safety in the original investment that is secured by the value of the underlying basket of shares.Greater safety is provided since the preferred shares are given priority over the capital shares both when income is paid out and when the corporation is wrapped up.The income from the preferred shares is usually declared as dividend income, which in some jurisdictions (e.g.