When all of the authorized shares have the same rights and characteristics, the share is called
A) Preference share.
B) Ordinary share.
C) Par value share.
D) Stated value share.
E) No-par value share.

Question

Quizplus · Accepted Answer

Ordinary shares have the same rights and characteristics, including the right to vote and the right to receive dividends, and do not have any preference over other shares. Preference shares have certain preferences, such as priority to receive dividends or priority to receive assets in the event of liquidation. Par value and stated value shares have specific nominal values assigned to them, whereas no-par value shares do not have a specific nominal value.

When All of the Authorized Shares Have the Same Rights