Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Ordinary share capital is the most common type of share capital. It represents the ownership interest in the company and the holders of these shares are entitled to vote at company meetings and are eligible for a share of the profits in the form of dividends.

B) is not correct as the decision on dividend payment is usually made by the board of directors and not just at the annual general meeting. 
C) is incorrect as stockbrokers may recommend both preference and ordinary shares to their clients. 
D) is also incorrect as ordinary shares do not carry a fixed rate of dividend, it may vary depending on the company’s performance.

Which One of the Following Statements Is Correct