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Question : Which of the following is not a characteristic of equity shares?

Option 1: Voting rights
 

Option 2: Fixed dividend
   

Option 3: Residual claim on assets

 

Option 4: Higher risk


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Fixed dividend


Solution : The correct answer is (b) Fixed dividend.

Equity shares, also known as common shares or ordinary shares, represent ownership in a company. Fixed dividend is not a characteristic of equity shares. Unlike preference shares, equity shares do not have a fixed dividend rate. Dividends on equity shares are usually declared by the company's board of directors and are subject to the company's profitability and available funds.

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