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प्रश्न
Explain the following term/concept in detail:
Preference shares
उत्तर
As the name indicates, these shares have certain preferential rights distinct from those attached to the equity shares.
The shares which carry the following preferential rights are termed preference shares:
- A preferential right to receive the payment of dividends during the Lifetime of the company.
- A preferential right to receive the return of capital in the event of winding up of the company. The holder of the preference share has a prior right to receive a fixed rate of dividend before any dividend is paid to the equity shareholders. The rate of dividend is prescribed at the time of issue.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
Select the correct answer from the options given below and rewrite the statement.
______ participate in the management of their company
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.
Select the correct answer from the options given below and rewrite the statement.
Debenture holders are ______ of the company.
Write a word or a term or a phrase which can substitute the following statement.
A document of title of ownership of shares.
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 shareholders enjoy fixed rate of dividend.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Complete the sentence.
Equity shareholders elect their representatives called ______
Complete the sentence.
Bonus shares are issued as gift to ______
Correct the underlined word and rewrite the following sentence.
Equity shares get dividend at fixed rate.
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Study the following case/situation and express your opinion.
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely
- According to you which type of share Mr. Satish will choose to invest?
- What does he receive as return on investment?
- State any one right which he will enjoy as a shareholder.
Justify the following statement.
Equity shareholders are real owners and controllers of company.
Justify the following statement.
Preference shares do not carry any voting rights.
State the features of equity shares.
Answer the following question.
What are preference shares? State it’s features
