Which of the Following Statements Relating to Ordinary Shares Is

question 44

Multiple Choice

Which of the following statements relating to ordinary shares is incorrect?

• A) Ordinary shares receive their dividends after the preference shares.
• B) Holders of ordinary shares have the right to sell their shares.
• C) The market price of ordinary shares tends to fluctuate with expectations of future profits.
• D) Ordinary shares have a fixed rate of dividend attached.

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Definitions:

Corporate Securities

Financial instruments issued by corporations, including stocks and bonds, representing ownership or debt obligations.

Voting Rights

The entitlements of citizens to participate in the electoral process, such as the right to vote in elections and referendums.

Corporate Stock

Equity securities representing ownership in a corporation, entitling holders to a share of the company's profits.

Liquidates

To convert assets into cash or cash equivalents by selling them on the open market, often used in business contexts to settle debts.