Which Statement Relating to Preference Shares Is Not Correct

question 13

Multiple Choice

Which statement relating to preference shares is not correct?

• A)They are often non-voting shares.
• B)They are generally more risky for shareholders to own than ordinary shares.
• C)They are entitled to receive a dividend before the ordinary shareholders.
• D)They normally have a fixed rate of dividend attached.

Appreciate the differences between American and European options and their exercise mechanisms.

Grasp the fundamentals of marking-to-market and how it impacts the accounting of futures contracts.

Conceptualize the strategic use of combination strategies in options trading, such as buying both a call and a put option.

Identify the unique characteristics of commodity futures and their role in risk management strategies.

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Definitions:

Stated Price

The specific price that is set and declared in a contract or agreement for goods or services.

Remedies

Legal means for a party to enforce a right or redress a wrong.

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty, which may result in legal action for remedy.

Replacement

The act of substituting a person or thing with another person or thing that serves the same purpose or function.