The true statement concerning preference shares is:

Question

Quizplus · Accepted Answer

Preference shares typically provide shareholders with a fixed rate of dividend. Choice A is incorrect because preference shares can be listed on the stock exchange. Choice B is incorrect because preference shareholders generally face lower risk than ordinary shareholders as they are paid dividends before ordinary shareholders, and have priority in the event of the company being liquidated. Choice C is incorrect because preference shares generally do not have voting rights, or have limited voting rights.

The True Statement Concerning Preference Shares Is