Preference Shares Quiz

Non-redeemable preference shares are shares that cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.

Participating preference shares are shares that 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.

Non-participating preference shares are shares that do not possess any right to participate in surplus profits or any surplus gained at the time of liquidation of the company.