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Question
Give one word / Term / phrase for the following statement :
Shares having first right on surplus assets at the time of liquidation.
One Word/Term Answer
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Solution
Preference Shares
Explanation: Preference shares are given priority over equity shares regarding the distribution of dividend and repayment of capital at the time of liquidation or winding up of a company. In other words, preference shareholders have the first right (preferential) in the surplus assets or the earnings of a company over equity shareholders.
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