A Difference Between Ordinary and Preference Shares Is

question 64

Multiple Choice

A difference between ordinary and preference shares is:

• A)preference dividends are payable only after ordinary dividends have been paid
• B)preference dividends are tax deductible
• C)preference dividends are a fixed amount
• D)ordinary shares are less risky
• E)preference shares have greater potential for capital gains.

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Definitions:

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The action of substituting one thing for another or the process of changing a penalty to a less severe one.

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