Explain the preferential rights enjoyed by Preference Shareholders ove

1.	Explain the preferential rights enjoyed by Preference Shareholders over Equity Shareholders.
Answer» Following are the preferential rights enjoyed by preference shareholder over equity shareholder. 1 Preference at the time of payment of dividend:- receiving a fixed rate of dividend, out of the net profits of the company, before any dividend is declared for equity shareholders; 2. Preference in the repayment of capital:- Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company;

Explain the preferential rights enjoyed by Preference Shareholders over Equity Shareholders.

Answer»

Following are the preferential rights enjoyed by preference shareholder over equity shareholder.

1 Preference at the time of payment of dividend:- receiving a fixed rate of dividend, out of the net profits of the company, before any dividend is declared for equity shareholders;

2. Preference in the repayment of capital:- Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company;

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Explain the preferential rights enjoyed by Preference Shareholders over Equity Shareholders.

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