Which of the following statements concerning preference shares is correct?

Question

Quizplus · Accepted Answer

Preference shares typically receive a fixed rate of dividend, which is usually a percentage of the par value of the shares. This dividend must be paid before any dividends can be paid to ordinary shareholders. Preference shares may or may not have voting rights attached to them. While preference shareholders may not have the same potential for capital gains as ordinary shareholders, they also typically face less risk of loss. Preference shares can be listed on stock exchanges. Therefore, statement C is the correct option.

Which of the Following Statements Concerning Preference Shares Is Correct