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Question
Avantika is a Preference shareholder. What benefit does she has as a Preference shareholder?
Options
Entitled to receive what is left after all prior claims have been satisfied
Voting rights
Main risk bearers
Dividend is fixed
MCQ
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Solution
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.
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Notes
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