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A Company may issue ……………….
Equity Shares
Preference Shares
Equity and Preference both shares
None of the Above
- Equity Shares: These represent ownership in a company. Equity shareholders have voting rights and are entitled to dividends, but they are considered riskier as they receive residual interest after all obligations.
- Preference Shares: These give shareholders preferential rights to dividends and asset distribution upon liquidation, usually at a fixed rate. However, they typically do not offer voting rights.
- Equity and Preference both shares: Companies have the ability to issue both types of shares to meet different investment needs and funding strategies.
- None of the Above: Not applicable, as companies regularly issue the first two types.
- Correct Answer: Option 3 - Equity and Preference both shares
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