Question

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called ______.

Options

• Equity Share

• Non-cumulative preference share

• Non-convertible preference share

• Non-guaranteed preference share

Answer 1

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called Equity Share.

Explanation:

Equity Shares do not have a fixed rate of dividend. The dividend on equity shares varies depending on the company's profits. Equity shareholders receive dividends only after all other obligations (like preference dividends) are met.