Question

State, whether the following statements is True or False.
Equity share is a guarantee of fixed rate of dividend.

विकल्प

• True

• False

Answer 1

False
Explanation: Preference shares are the shares with a fixed rate of dividend. They receive dividend at the pre-defined rate, whereas equity shares do not guarantee a fixed rate of dividend. Moreover, it is uncertain whether the dividend will be distributed to them or profits will be retained.