Question : The share on which there is no pre-fixed rate of dividend is decided, but the rate of dividend fluctuates every year according to the availability of profits such shares are called ________.
Option 1: Equity shares
Option 2: Non – cumulative preference shares
Option 3: Non – convertible preference shares
Option 4: Non – Guaranteed preference shares
Correct Answer: Equity shares
Solution :
Answer = Equity shares
An equity share is not a preference share. It implies that equity shares do not enjoy preferential rights. Equity shares are risk-bearing shares. Equity shareholders control the affairs of the company. An Equity share receives a dividend only when there is a balance of profit after the payment of the preference dividend.
Question : The shares on which there is no any pre fixed rate of dividend, but the rate of dividend is fluctuating every year according to the availibility of profit, such shares are called :
Question : Preference shares, in case the holders of these have the right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called _______.
Question : Preference shares are referred to as such if the holder has the opportunity, within the terms of the issuance, to convert their prefrence shares into equity shares are called-
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