Multiple choice

Right shares enjoy preferential rights with regard to

  1. payment of dividend

  2. payment of retained earnings

  3. repayment of capital

  4. none of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Right shares are ordinary equity shares offered to existing shareholders with preemptive rights to maintain their proportional ownership, but they do not inherently carry preferential rights regarding dividend payment or capital repayment over other equity shares.