Question

Preference shareholders get preference over equity share for ______.

Options

• Payment of dividend

• Voting

• Participation in management

• None of these

Answer 1

Preference shareholders get preference over equity share for Payment of dividend.

Explanation:

• Preference Shareholders get dividends before equity shareholders.
• They also receive first priority in the distribution of the company’s assets in liquidation.
• However, they typically lack the ability to vote or affect management choices.