Finance · Financial Markets

Analyze the following points regarding the different types of equity instruments and preference shares that can be issued by a company in the Indian capital market. Statement 1. Equity shares represent the ownership interest in a company and carry voting rights but do not provide a guaranteed dividend. Statement 2. Cumulative Preference Shares are those where the dividend if not paid in a particular year accumulates and is paid in the subsequent years before any dividend is paid to equity shareholders. Statement 3. Non-Convertible Preference Shares can be redeemed by the company after a certain period but they cannot be converted into equity shares. Statement 4. Participating Preference Shares allow the holder to participate in the surplus profits of the company after a fixed dividend has been paid to both preference and equity shareholders. Identify the correct combination from the following: