The following statements apply to equity preference shareholders Which one of them applies only to p...........

General Accounting Principles Accounting for Shares

The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders?

Shareholders risk the loss of investment

Shareholders bear the risk of no dividends in the event of losses

Shareholders usually have the right to vote

Dividends are usually given at a set amount in every’ financial year.

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Explanation:

Preference shares are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. Most preference shares have a fixed dividend (Dividends are usually given at a set amount in every’ financial year),while common stocks generally do not. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.