12. A Company may issue ……………….
(A) Equity Shares
(B) Preference Shares
(C) Equity and Preference both shares
(D) None of the Above
Answers
Answered by
0
A share that isn't a preference share is known as an equity share. As a result, shares with no preferential rights are called equity shares. They only have equity in the company, which means they own it. The dividend paid to stock investors is not set in stone. The Board of Directors makes this decision based on the company's financial performance. If no dividend can be issued in a given year, the shareholders lose the dividend for that year; it does not accumulate.
Therefore, option (C) is the correct answer.
Answered by
1
A company may issue both Equity and preference share.
Detailed answer
The company offers both equity and preference shares to investors but prefers more preference shares.
- Preference share helps companies to get more money for their share, this also ensures proper dividend payout.
- This is great for the investors also as they have a lower risk and higher gain chance.
- The debt to equity ratio is less when compared to equity shares as this helps investors to be protected against bankruptcy.
- Shares are nothing but a right and a portion to the part of a particular company
Similar questions