Mayank has surplus money of Rs. 25,00,000, which he wants to invest
either in equity shares or in preference shares. Two real estate
companies (Magic Estate and Skylark Enterprises), with almost the
same creditworthiness, are launching their public issue. Magic Estate is
coming up with a public issue of preference shares, while Skylark
Enterprises is coming up with equity shares. Mayank is confused about
the two issues. He consulted his friend Gaurav, who is a portfolio
manager and Gaurav convinced him to invest the money in Magic
Estate due to ‘Preferential Rights’ of preference shareholders over
equity shareholders.
State the ‘Preferential Rights’ stated by Gaurav, which convinced
Mayank to invest in Magic Estate.
Answers
Answer:
Mayank has surplus money of Rs 25,00000, which he wants to invest either in equity shares or in preference shares. Two real estate companies ( Magic and Skylark Enterprises), with almost same creditworthiness are launching their public issue. Magic Estate is coming up with a public confused about the two issues. He consulted his friend Gaurav, who is a portfolio manager and Gaurav convinced him to invest the money in magic Estate due to Preferential Rights of preference shareholders over equity shareholders. State the preferential Rights stated by Gaurav, which convinced Mayanak to invest in Magic Estate (4)
Answer:
Mayank has surplus money of Rs. 25,00,000, which he wants to invest
either in equity shares or in preference shares. Two real estate
companies (Magic Estate and Skylark Enterprises), with almost the
same creditworthiness, are launching their public issue. Magic Estate is
coming up with a public issue of preference shares, while Skylark
Enterprises is coming up with equity shares. Mayank is confused about
the two issues. He consulted his friend Gaurav, who is a portfolio
manager and Gaurav convinced him to invest the money in Magic
Estate due to ‘Preferential Rights’ of preference shareholders over
equity shareholders.
State the ‘Preferential Rights’ stated by Gaurav, which convinced
Mayank to invest in Magic Estate.