Which shares provide a steady income in the form of fixed rate of return but with low risk and safety of investment?
Preference shares
Equity shares
Debentures
None of the above
Preference shares provide steady income in the form of fixed rate of return and safety investment.
Niyati wants higher and certain returns and also wants the safety of capital. What will she choose amongst the preference share and equity share ?
Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
Do investors who prefer taking the risk for higher returns opt for investing in equity shares?