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Question : Which shareholder returns their capital after some specified time?

Option 1: Redeemable preference shares 

Option 2: Non – Redeemable preference shares

Option 3: Cumulative preference shares

Option 4: Participating preference shares 


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Redeemable preference shares


Solution : Answer = Redeemable preference shares

Redeemable preference shares are those shares that allow the company to return the capital to shareholders after a specified period. Unlike non-redeemable preference shares, which do not have a predetermined maturity date, redeemable preference shares provide the company with the option to buy back the shares at a later date. In the case of redeemable preference shares, these shares are redeemed after a stipulated period.

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