Question

Which one of the following securities cannot be issued by a company in India?

• A. Participating preference shares.
• B. Redeemable preference shares.
• C. Deferred shares.
• D. Debentures.

Answer 1

The correct option is C Deferred shares.

A deferred share is a share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid.