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Ownership securities are represented by which of the following types of securities?Options :Preference SharesEquity SharesBondsNone of the above

Question

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Solution

Ownership securities are represented by both Preference Shares and Equity Shares.

Here's why:

  1. Equity Shares: These are the most common type of ownership securities. When you buy equity shares, you are buying a piece of ownership in the company. This gives you the right to vote on company matters and share in the company's profits through dividends or capital appreciation.

  2. Preference Shares: These are a special type of shares that give owners a higher claim on earnings and assets than common shareholders. This means that if the company pays dividends, preference shareholders will be paid before equity shareholders. However, preference shareholders usually don't have voting rights in the company.

So, the answer to your question is both Preference Shares and Equity Shares represent ownership securities.

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