Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
Preference shares are considered less risky than common shares primarily due to their characteristic of:
A
Providing fixed dividends, which reduces uncertainty about future cash flows.
B
Offering a guaranteed return in the event of company liquidation, though this is not assured during financial distress.
C
Generating a larger proportion of total return from future price appreciation, unlike common shares.
