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Sources of Business Finance — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMSources of Business Finance2 Marks
Question
Why are preference shares called 'Shares of Preference' ?
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Answer

  • Preference shareholders have the right to get dividend from profit and to get back capital when the company is dissolved. So preference share is called the share of choice.

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