What are the two listed types of shares?

What are the two listed types of shares?

• A. Ordinary shares
• B. Preference shares
• C. Ordinary shares and Preference shares
• D. Debt shares

Answer: (C)

The main idea is that shares come in two primary equity categories: ordinary (common) shares and preference shares. Ordinary shares give ownership and typically voting rights, with dividends that can vary and come after preference payments. Preference shares offer priority for fixed dividends and for repayment of capital on liquidation, usually without or with limited voting rights. The option that lists both ordinary and preference shares is correct because it identifies the two main types of shares. The other choices are incomplete or incorrect because they refer to only one type or to debt instruments, which are not shares.

The main idea is that shares come in two primary equity categories: ordinary (common) shares and preference shares. Ordinary shares give ownership and typically voting rights, with dividends that can vary and come after preference payments. Preference shares offer priority for fixed dividends and for repayment of capital on liquidation, usually without or with limited voting rights. The option that lists both ordinary and preference shares is correct because it identifies the two main types of shares. The other choices are incomplete or incorrect because they refer to only one type or to debt instruments, which are not shares.