BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They cannot be sold on secondary markets
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They have market-determined quoted prices.
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They have market-determined quoted prices.
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Detailed explanation-1: -The correct option is A. Preference shareholders receive dividend on their investment at a fixed rate before any dividend paid to the common stockholders. In case of liquidity of the company, preference stock holders will receive their investment first.
Detailed explanation-2: -One of the biggest differences between private and public equity is that private equity investors are generally paid through distributions rather than stock accumulation. An advantage for public equity is its liquidity as most publicly traded stocks are available and easily traded daily through public market exchanges.
Detailed explanation-3: -Private equities are generally illiquid and thought of as a long-term investment. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public. Private equity is also far less liquid than publicly traded stock.
Detailed explanation-4: -which of the following is most accurate concerning key characteristics of different types of preference shares? preference shares have characteristics of both debt and equity securities.