3 Questions
What are the characteristics of non-redeemable preference shares?
Non-redeemable preference shares cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.
What are the rights of participating preference shares?
Participating preference shares have the right to participate in any additional profits, after paying the equity shareholders. The surplus of profit is apart from the fixed dividend paid up for preference shares.
What are the characteristics of non-participating preference shares?
Non-participating preference shares do not possess any right to participate in surplus profits or any surplus gained at the time of liquidation of the company.
Test your knowledge on convertible and non-convertible preference shares with this quiz. Learn about the conditions and time periods for converting shares and understand the differences between these two types of shares.
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