CAF-7 · Chapter 8 · Question 12 of 15
Which of the following is a primary difference between 'Ordinary Shares' and 'Preference Shares'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Ordinary shareholders typically have full voting rights on company decisions, whereas preference shareholders generally do not have voting rights
Explanation
A key distinction is that ordinary shares carry voting rights giving them control over the company, whereas preference shares usually do not carry voting rights (but have priority for fixed dividends).
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