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Answer in one sentence. What are preference shares?

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प्रश्न

Answer in one sentence.

What are preference shares?

एक पंक्ति में उत्तर
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उत्तर

Preference shares are those shares which carry preferential rights to receive dividend and return of capital.

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Sources of Owned Capital - Shares
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अध्याय 2: Sources of Corporate Finance - Exercises [पृष्ठ ३७]

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बालभारती Secretarial Practice [English] Standard 12 Maharashtra State Board
अध्याय 2 Sources of Corporate Finance
Exercises | Q 1. H) 3. | पृष्ठ ३७

संबंधित प्रश्न

______ participate in the management of their company.


Select the correct answer from the options given below and rewrite the statement.

The holder of preference share has right to receive ______ rate of divided.


Select the correct answer from the options given below and rewrite the statement.

The accumulated dividend is paid to ______ preference shares.


The holder of ______ preference shares has the right to convert their shares into equity shares.


Debenture holders are ______ of the company.


______ is paid on borrowed capital.


Write a word or a term or a phrase which can substitute the following statement.

The ‘real masters’ of the company.


Write a word or a term or a phrase which can substitute the following statement.

The holders of these shares are entitled to participate in the surplus profit.


Write a word or a term or a phrase which can substitute the following statement.

The value of share which is written on the share certificate.


Equity shareholders enjoy a fixed rate of dividend.


State whether the following statement is true or false.

Equity shareholders are described as ‘shock absorber’ when company has financial crisis.


Study the following case/situation and express your opinion.

Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely

  1. According to you which type of share Mr. Satish will choose to invest?
  2. What does he receive as return on investment?
  3. State any one right which he will enjoy as a shareholder.

Justify the following statement.

Preference shares do not carry any voting rights.


State any 4 features of shares.


State the features of equity shares.


Justify the following statement.

Equity shareholder enjoys certain rights.


Explain the following term/concept in detail:

Preference shares


Justify the following statement.

Preference Shareholders get priority in dividends over equity shareholders.


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