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Share Capital and Types of Shares — SPCC STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceSPCCShare Capital and Types of Shares2 Marks
Question
State any four characteristics of preference shares.
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Answer

(i) Preference shareholder have right to get dividend at fixed rate. (ii) Preference shareholders have a right to vote for those matters which are concerned with their subject. (iii) Usually maket price of such share is fixed. The market price of this share changes as per the change in interest rate structure. (iv) The investor who wants stable fix income and safety of capital purchase such types of shares.

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