Preference shares have contractual preference over ordinary shares in certain areas.

Name: Preference shares have contractual preference over ordinary shares in certain areas.
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Quizplus · Accepted Answer

Preference shares have contractual preference over ordinary shares in terms of dividend payments and in the event of liquidation, where preference shareholders have priority in receiving their capital back. However, in terms of voting rights and control of the company, ordinary shares generally hold more power.

Preference Shares Have Contractual Preference Over Ordinary Shares in Certain