Which type of shares has a higher claim on dividends and assets than ordinary shares?
A) Voting
B) Preference
C) Senior
D) Favoured

Question

Quizplus · Accepted Answer

Preference shares have a higher claim on dividends and assets than ordinary shares because they are issued with preferential rights. This means that they are entitled to receive a fixed rate of return on their investment before any dividends are paid to ordinary shareholders. In addition, in the event of a company liquidation or bankruptcy, preference shareholders have a higher priority in receiving their share of the company's assets.

Which Type of Shares Has a Higher Claim on Dividends