Which of the following is an advantage of preference shares?
A)Preference shareholders are guaranteed that they will not take a loss on their investment.
B)Preference shareholders may sell their shares for a price higher than that of ordinary shares.
C)Preference shareholders have the first claim on dividend funds.
D)Preference shareholders have higher voting rights than ordinary shareholders.

Question

Quizplus · Accepted Answer

Preference shareholders have the first claim on dividend funds, meaning they receive dividends before ordinary shareholders.

Which of the Following Is an Advantage of Preference Shares