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
Answer (1)
24th 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.
Comments (0)
Related Questions
Trending Articles/News
