Which of the following provisions is unique to preference shareholders and usually NOT available to ordinary shareholders?

Question

Quizplus · Accepted Answer

Cumulative dividends feature and fixed dividend are the provisions that are unique to preference shareholders and are usually not available to ordinary shareholders. Preference shareholders have a fixed dividend rate that is paid out to them before any dividends are paid to ordinary shareholders. In addition, preference shareholders often have a cumulative dividend feature, which means that if the company is not able to pay out the full dividend in any given year, the unpaid dividends accrue and must be paid out to the preference shareholders before any dividends are paid to ordinary shareholders. Voting rights, on the other hand, are typically available to both preference and ordinary shareholders.

Which of the Following Provisions Is Unique to Preference Shareholders