Question

Investors who want steady income may not prefer ______.

Options

• Preference Shares

• Debentures

• Equity Shares

• Bonds

Answer 1

Investors who want steady income may not prefer equity shares.

Explanation:

• Equity Shares do not provide a fixed return; dividends are paid only if the company makes profits, and the rate of return is not fixed.
• Preference shares, debentures, and bonds generally offer a steady and predictable income through fixed dividends or interest.

Thus, investors who want regular income at lower risk usually avoid equity shares.