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The dividend is paid first to ______ shareholders. - Secretarial Practice

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Question

The dividend is paid first to ______ shareholders.

Options

  • Equity

  • Preference

  • Deferred

MCQ
Fill in the Blanks

Solution

Dividend is paid first to preference shareholders.

Explanation:

The holder of preference share have a prior right to receive fixed rate of dividend before any dividend is paid to equity shares. The rate of dividend is prescribed at the time of issue.

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Sources of Owned Capital - Shares
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Chapter 10: Dividend and Interest - Exercises [Page 151]

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