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Explain the following term/concept in detail: Preference shares - Secretarial Practice

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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:

  1. A preferential right to receive the payment of dividends during the Lifetime of the company.
  2. 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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Sources of Owned Capital - Shares
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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.


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.

A document of title of ownership of shares.


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

Name the shareholders who participate in the management.


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.


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.


Complete the sentence.

The convertible preference share holders have a right to convert their shares into ______


Equity shareholders elect their representatives called ______.


Answer in one sentence.

What is a share?


Answer in one sentence.

What are cumulative preference shares?


Correct the underlined word and rewrite the following sentence.

Preference shares get dividend at fluctuating rate.


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.

Different investors have different preferences.


Justify the following statement.

Equity share capital is risk capital.


State the features of equity shares.


The dividend is paid first to ______ shareholders.


Give one word or phrase for the following sentence:

What is Share?


Share
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