Q39
Which of the following securities is not redeemable?
A.
Equity shares
AnswerB.
Preference shares
C.
Cumulative preference shares
D.
Debentures
Answer: Option A
Solution
Answer: Option A
Solution:
Equity shares securities is not redeemable. Issuing redeemable equity shares would mean company is willing to pay back entire amount of the money invested by the equity shareholders. Hence, the companies act does not allow the equity shares to be redeemed.