Preference Shares

Preference shares are shares certain _____ rights.

• Privilege

• Ordinary

Dividend is paid to the preference shareholders depending on the profit percentage.

• True

• False

In the event of winding up, preference shareholders are paid back on priority basis.

• True

• False

Preference shares are hybrid shares combining features of both ______ & _____

• Mutual Funds, Bonds

• Equity Shares , Bonds

• Debentures, Mutual Funds

• Equity Shares , Debentures

_____ Preference shares , dividends are carried forward in the next year, if failed to pay.

• Non-Cumulative

• Cumulative

Arrears of dividend must be paid before the dividend on any other class.

• False

• True

Unless, otherwise stated preference shares are non-cumulative.

• True

• False

In which of the following, preference share dividends are non carried forward.

• Cumulative Shares

• Non- Cumulative Shares

Non- Participating preference shares do not enjoy ___________

• the right to vote

• the right to get dividend

• the right to get dividend out of surplus profit

• the right to get interest out of surplus profit

Holders of Convertible Preference Shares can get the preference shares converted to _____ after a fixed period.

• Debentures.

• Equity Shares

• Liquid Cash