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Question
______ is attractive to bold and adventurous investors whereas ______ appeals to conservative and orthodox investors.
Options
Equity share, preference shares
Preference shares, equity shares
Equity Shares, debentures
Debentures, equity shares
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Solution
Equity share is attractive to bold and adventurous investors whereas preference shares appeals to conservative and orthodox investors.
Explanation:
Equity shares are higher‑risk, variable‑dividend instruments with voting rights that attract bold, adventurous investors seeking capital gains. Preference shares offer fixed dividends, lower risk and limited control, appealing to conservative, income‑seeking investors.
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