1
Question
A preference share is one which enjoys a _______.
Open in App
Solution
The correct option is C preferential right regarding payment of dividend and return of capital
Preference shares are those shares which carry certain special or priority rights. Firstly, dividend at a fixed rate is payable on these shares before any dividend is paid on equity shares. At the time of winding up of the company, capital is repaid to preference shareholders prior to the return of equity capital.
Preference shares are those shares which carry certain special or priority rights. Firstly, dividend at a fixed rate is payable on these shares before any dividend is paid on equity shares. At the time of winding up of the company, capital is repaid to preference shareholders prior to the return of equity capital.
Suggest Corrections
0
Similar questions
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
