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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
______ participate in the management of their company.
The holder of ______ preference shares has the right to convert their shares into equity shares.
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.
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.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
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?
Correct the underlined word and rewrite the following sentence.
Equity shares get dividend at fixed rate.
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
- 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.
Distinguish between the following.
Equity shares and Preference shares.
Justify the following statement.
Different investors have different preferences.
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
