Business Studies, asked by xLUCIFERx, 9 months ago

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Define preference share, And explain its features?? ​

Answers

Answered by Anonymous
2

Preference Share :-

It is a share which promise the holder for fixed dividend and the payment takes priority of that ordinary share dividend. It is a long term source for finance in a company.

Difference type of preference share :-

  • Cumulative & Non Cumulative shares
  • Participation & Non Participation shares
  • Convertible & Non Convertible shares

Features of Preference share :-

  • No Voting rights
  • No Share in earning
  • Fixed Dividend
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