Question : To whom dividend is given at a fixed rate in the company?
Option 1: To equity shareholders
Option 2: To preference share holders
Option 3: To debenture holders
Option 4: To promoters
Correct Answer: To preference share holders
Solution : Answer = To preference shareholders
A preference share is a share that enjoys some preferential rights over equity shares. A preference share enjoys the following preferential rights, i.e., the right to receive dividends at a fixed rate.