Question

Explain following points with respect to equity shares and

preference shares:-

a) Charge on assets.

b) Fluctuating or fixed returns.​

Answer 1

Answer:

1.)the right of a lender to be paid from a borrower's assets if the debt is not    paid on time: Every year the company must report its total debts secured by a charge on assets.

2.)A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times.

Explanation:

Answer 2

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• The right of a lender to be paid from a borrower's assets if the debt is not paid on time.
• A fixed-income security is an investment that provides a return in the form of fixed periodic interest payments.