Question

To whom is dividend given at a fixed rate in a company?

• A. Equity shareholders
• B. Preference shareholders
• C. Debenture holders
• D. Promoters

Hint:

Preference shareholders get fixed dividend + repayment priority; equity shareholders get residual profits.

Answer 1

The Correct Option is B

Step 1: Types of shareholders.
- Equity shareholders: Receive dividend at fluctuating rate, depending on profits.
- Preference shareholders: Receive dividend at a fixed rate, before equity shareholders.
Step 2: Legal priority.
Preference dividend is paid first; only after that can equity shareholders receive dividend.
Step 3: Conclude.
Thus, dividend at a fixed rate is given to preference shareholders.
Final Answer: \[ \boxed{\text{Preference shareholders}} \]