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 generally receive a fixed amount of dividends before ordinary shareholders do.
C)Preference shareholders have higher voting rights than ordinary shareholders.
D)Preference shareholders may sell their shares for a price higher than that of ordinary shares.

Question

Quizplus · Accepted Answer

Preference shareholders generally receive a fixed dividend before any dividends are paid to ordinary shareholders, providing them with a more stable income.

Which of the Following Is an Advantage of Preference Shares