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 :
Option 1: Preference Share
Option 2: Equity Share
Option 3: Non cumulative Preference share
Option 4: Non Guaranteed Preference share
Answer (1)
25th Jan, 2024
Correct Answer: Equity Share
Solution : The shares on which the rate of dividend is not pre-determined, but instead varies annually in accordance with the availability of profits, are known as Equity Shares.
Hence the correct answer is option 2.
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