The statement relating to preference shares that is not correct is:
A) They normally have a fixed rate of dividend attached.
B) Holders are entitled to receive a dividend before ordinary shareholders.
C) They are generally more risky for shareholders to own than ordinary shares.
D) They are often non-voting shares.

Question

Quizplus · Accepted Answer

Preference shares are usually less risky than ordinary shares because they have a fixed rate of dividend and holders receive their dividend before ordinary shareholders.

The Statement Relating to Preference Shares That Is Not Correct