Which statement about preference shares is correct?
- A They typically carry a fixed dividend and rank ahead of equity shares in liquidation
- B They always carry full voting rights
- C They rank behind unsecured creditors and equity shares
- D They must be redeemed within one year
Answer
They typically carry a fixed dividend and rank ahead of equity shares in liquidation
Preference shares sit between debt and equity, receiving a fixed dividend before equity holders but usually without voting rights.





