Question

A preference shares is one which carries _______________________.

• A. A right to receive dividend at a stipulated rate or of a fixed amount only before any dividend is paid on equity shares
• B. A right to receive repayment of capital only on winding up of the company before the capital of equity share holders is returned.
• C. Both rights mentioned in (a) and (b)
• D. None of these

Answer 1

Answer: (C)

Both rights mentioned in (a) and (b)

Preference shares are company stock with dividends that are paid to stockholders are entitled to be paid from company assets before shareholders with the right to be paid dividends in an amount equal to designed to be paid out only if the amount of dividends received by Fixed Income Essentials .