Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called

A. bear

B. bull

C. shareholder

D. preference shares

Answer: Option D

Solution(By Examveda Team)

Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called preference shares. Preference shares are the shares which promise the holder a fixed dividend, whose payment takes priority over that of ordinary share dividends.