The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called :
A)Equity Share
B)Non-cumulative preference share
C)Non-convertible preference share
D)Non-guaranteed preference share

Question

Quizplus · Accepted Answer

Equity shares do not have a pre-fixed rate of dividend. Instead, the rate of dividend fluctuates every year based on the company's profitability. Equity shareholders are essentially owners of the company and bear the highest risk, as their dividends are paid out after all other obligations are met.

The Shares on Which There Is No Any Pre-Fixed Rate