[amp_mcq option1=”At par” option2=”At premium” option3=”At Discount” option4=”At face value” correct=”option3″]<\/p>\n
The correct answer is: Preference share of a company cannot be redeemed at a discount.<\/p>\n
A preference share is a type of share that gives its holders a preference over ordinary shareholders in the payment of dividends and the distribution of assets in the event of liquidation. Preference shares are usually redeemed at par value, which is the price at which they were originally issued. However, they can also be redeemed at a premium or a discount.<\/p>\n
A premium is a price that is higher than the par value. A discount is a price that is lower than the par value. Preference shares are rarely redeemed at a discount, as this would be disadvantageous to the shareholders.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”At par” option2=”At premium” option3=”At Discount” option4=”At face value” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-55966","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n