Unlike ordinary shareholders, preference shareholders are more likely to be interested in the extent to which profit is safe, rather than in profit growth, due to the fact that the return on their investment is typically fixed.

Question

Quizplus · Accepted Answer

Preference shareholders generally receive a fixed rate of dividend, and therefore their main concern is the safety of their investment and the stability of the company's profits, rather than any potential for growth in profits.

Unlike Ordinary Shareholders, Preference Shareholders Are More Likely to Be