Question

Avantika is a Preference shareholder. What benefit does she has as a Preference shareholder?

पर्याय

• Entitled to receive what is left after all prior claims have been satisfied

• Voting rights

• Main risk bearers

• Dividend is fixed

Answer 1

Dividend is fixed

Explanation:

Preference shareholders receive a fixed-rate dividend paid before equity holders and have priority in capital repayment on winding up; they usually lack voting rights, giving steady income with lower risk but limited upside.