12
Question
The money raised by issue of preference shares is called as _________ share capital.
The money raised by issue of preference shares is called as _________ share capital.
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Solution
The correct option is B Preference
The capital raised by issue of preference shares is called as preference share capital. The preference share holders enjoy a preferential position over equity shareholder in receiving fixed dividend out of the net profits of the company and receiving capital at the time of liquidation.
The capital raised by issue of preference shares is called as preference share capital. The preference share holders enjoy a preferential position over equity shareholder in receiving fixed dividend out of the net profits of the company and receiving capital at the time of liquidation.
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