Advertisements
Advertisements
Question
The dividend is paid first to ______ shareholders.
Options
Equity
Preference
Deferred
Advertisements
Solution
Dividend is paid first to preference shareholders.
Explanation:
The holder of a preference share has a prior right to receive a fixed rate of dividend before any dividend is paid to equity shares. The issuer prescribes the dividend rate.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ are residual claimants against the income or assets of the company.
______ shares are issued free of cost to existing equity shareholders.
Select the correct answer from the options given below and rewrite the statement.
The holder of preference share has right to receive ______ rate of divided.
Select the correct answer from the options given below and rewrite the statement.
The accumulated dividend is paid to ______ preference shares.
Debenture holders are ______ of the company.
Write a word or a term or a phrase which can substitute the following statement.
The ‘real masters’ of the company.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is written on the share certificate.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is determined by demand and supply forces in the share market.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
Answer in one sentence.
What are Equity Shares?
Answer in one sentence.
What are cumulative preference shares?
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Justify the following statement.
Preference shares do not carry any voting rights.
Justify the following statement.
Different investors have different preferences.
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
