shares provide a steady income in the form of a fixed rate of return but with low risk and safety investment.

Equity

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Preference

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Cumulative

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Participating

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Solution

The correct option is B Preference
Preference shares provide a steady income in the form of a fixed rate of return but with low risk and safe investment. These shares are prefered over equity share:
1. The payment of dividend.
2. The repayment of investment amount during winding up.

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Similar questions

Which shares provide a steady income in the form of fixed rate of return but with low risk and safety of investment?

R s . 29, 040

15 %

R s . 100

20 %

Mr. Tiwari invested Rs 29,040 in 15% Rs 100 shares quoted at a premium of 20% . Calculate:

(i) the number of shares bought by Mr. Tiwari.

(ii) Mr. Tiwari's income from the investment.

(iii) the percentage return on his investment.

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