Q171
Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called
A.
bear
B.
bull
C.
shareholder
D.
preference shares
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called preference shares. Preference shares are the shares which promise the holder a fixed dividend, whose payment takes priority over that of ordinary share dividends.