Question : A company may issue __________.
Option 1: Equity shares
Option 2: Preference shares
Option 3: Equity and preference share
Option 4: None of the above
Correct Answer: Equity and preference share
Solution : Answer = Equity and preference share
A company can issue equity and preference shares. Section 43 of the Companies Act, 2013, categories share capital of a company broadly into two types or classes:
- Preference shares, and
- Equity shares.
Hence, the correct answer is option 3.