Our Recommendations :-
Follow MCOM FB Page

MERITS OF PREFERENCE SHARES

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked about 3 years ago

    0       0 Answer Now Comment Report
3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered almost 3 years ago

1--it can mobilise the funds from such investors who prefer reasonable safety of their capital and fixed rate of dividend with relatively greater certainty. 2-- it gives fixed rate of dividend 3-- capital can be raised by issuing preference shares without dilution of control.

    0       0 Comment Report
Important Note – Preparing for MCOM?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered about 3 years ago

Hiii friend..... **Merits of Preference Shares:** (i) No Legal Obligation for Dividend Payment (ii) Improves Borrowing Capacity (iii) No dilution in control (iv) No Charge on Assets (v) Capital structure flexibility (vi) Widening of the capital market (vii) Absence of financial burden (viii) Fixed regular income (ix) Safety of interest voting rights (x) Less capital losses (xi) Presence of preferential rights (xii) Absence of guarantee over assets Thanks & Regards,

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 3 years ago

**MERITS OF PREFERENCE SHARES** 1--it can mobilise the funds from such investors who prefer reasonable safety of their capital and fixed rate of dividend with relatively greater certainty. 2-- it gives fixed rate of dividend 3-- capital can be raised by issuing preference shares without dilution of control. 4-- by adding priviloges of participation redemption and conversion the preference shares can be made more attractive and competitive. 5-- no need of mortgage of company's assets. Thanks

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.