Question

Give one word / Term / phrase for each of the following statement :

Shares having first right on surplus assets at the time of liquidation.

Answer 1

Preference Shares

Explanation: Preference shares are given priority over equity shares regarding the distribution of dividend and repayment of capital at the time of liquidation or winding up of a company. In other words, preference shareholders have the first right (preferential) in the surplus assets or the earnings of a company over equity shareholders.