Which One of the Following Statements Is Not True About

question 10

Multiple Choice

Which one of the following statements is not true about preference shares?

• A)Owners of preference shares are not guaranteed dividend payments by the company.
• B)Preference shareholders have limited voting privileges relative to ordinary share owners.
• C)Preference share dividends are fixed financial obligations to the company just like bond coupon payments.
• D)Preference shares represent ownership in the company.

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Definitions:

Appoint

To assign a job or role to someone.

Securities And Exchange Commission

A U.S. federal agency that oversees the securities markets and protects investors by enforcing securities laws.

Shareholder

An individual or institution that owns one or more shares of stock in a public company.

Proxy Materials

Documents distributed to shareholders in preparation for corporate votes, including information on issues to be voted on at shareholder meetings.