GK
BASIC GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called
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shareholder
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bear
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bull
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preference shares
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Explanation:
Detailed explanation-1: -Preference shares, also known as preferred shares, have the advantage of a higher priority claim to the assets of a corporation in case of insolvency and receive a fixed dividend distribution. These shares often do not have voting rights and can be converted into common shares.
Detailed explanation-2: -Equity shareholders are given the last priority in payment of dividend.
Detailed explanation-3: -Preference shares give shareholders a priority when it comes to being paid company dividends, but they have less input into the strategy of the business.
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