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
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.
