Start learning →

Between preference and common shareholders, who gets dividends first?

AThe common holders
BThose holding more
CBoth rank equally
DThe preference holders
Answer & Solution
Correct answer: D. The preference holders
Preferred stock has a priority claim, so its dividend is paid before any common dividend.
Practise this question with Quill — CA Inter →

Keep practising Dividend Basics

Browse all Dividend Basics questions for CA Inter, or explore more Financial Management topics.

Start a Dividend Basics lesson →
Related questions