When preference shares share ratably with the ordinary shareholders in any profit distributions beyond the prescribed rate this is known as the
A)Cumulative feature.
B)Participating feature.
C)Callable feature.
D)Redeemable feature.

Question

Quizplus · Accepted Answer

Participating feature allows preference shares to share ratably with ordinary shares in any profit distributions beyond the prescribed rate.

When Preference Shares Share Ratably with the Ordinary Shareholders in Any