A company usually raises owners' funds as a combination of equity shares and preference shares. Explain the benefits a company may enjoy by issuing both equity and preferences shares
Answers
Answered by
0
Explanation:
Preference shares, which are issued by companies seeking to raise capital, combine the characteristics of debt and equity investments, and are consequently considered to be hybrid securities. Preference shareholders experience both advantages and disadvantages. On the upside, they collect dividend payments before common stock shareholders receive such income. But on the downside, they do not enjoy the voting rights that common shareholders typically do.
Similar questions