Preference shares are those which carry preferential right in respect of _________.

A. dividends

B. repayment of capital

C. both dividend and repayment of capital

D. right to vote on all important motions in AGM

Answer: Option C

Solution(By Examveda Team)

Preference shares are those which carry preferential right in respect of both dividend and repayment of capital. Preference shares, more commonly referred to as preferred stock, are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.