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प्रश्न
Explain the following term/concept in detail:
Preference shares
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उत्तर
As the name indicates, these shares have certain preferential rights distinct from those attached to the equity shares.
The shares which carry the following preferential rights are termed preference shares:
- A preferential right to receive the payment of dividends during the Lifetime of the company.
- A preferential right to receive the return of capital in the event of winding up of the company. The holder of the preference share has a prior right to receive a fixed rate of dividend before any dividend is paid to the equity shareholders. The rate of dividend is prescribed at the time of issue.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
______ participate in the management of their company.
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 value of share which is determined by demand and supply forces in the share market.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
State whether the following statement is true or false.
Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What are Equity Shares?
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
- According to you which type of share Mr. Satish will choose to invest?
- What does he receive as return on investment?
- State any one right which he will enjoy as a shareholder.
Justify the following statement.
Different investors have different preferences.
State any 4 features of shares.
State the features of equity shares.
Answer the following question.
What are preference shares? State it’s features
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
