State and explain types of preference shares.

      

State and explain types of preference shares.

  

Answers


John
1. Cumulative - these have rights to have arrears of dividend carried forward to subsequent years until they are paid.
2. Noncumulative - arrears of dividend in bad years are not carried forward to subsequent years.
3. Convertible - can converted to ordinary shares.
4. Non convertible - cannot be converted to ordinary shares.
5. Participation - these have an addition to the fixed rate of dividend.
6. Non participation - these do not have addition to fixed rate of dividend.

Jonmhumble answered the question on October 26, 2017 at 16:40


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