Preference share means the share is entitled to its regular dividend plus an additional share of the total amount of declared dividends.

Name: Preference share means the share is entitled to its regular dividend plus an additional share of the total amount of declared dividends.
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Question

Quizplus · Accepted Answer

Preference shares are entitled to a fixed dividend before any dividends are paid to ordinary shareholders, but they do not typically receive additional shares of the total declared dividends.

Preference Share Means the Share Is Entitled to Its Regular