ICMA Exam FMFQ Topic 2 Question 85 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 85
Topic #: 2

[All FMFQ Questions]

A company issues a share that has a par value of 100.00 and pays a fixed dividend of 2.0% annually? What type of share is this?

AOrdinary share

BCumulative share

CDeferred share

DPreference share

Show Suggested Answer

Suggested Answer: D

by Quentin at Aug 18, 2025, 03:23 AM

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Bernardine

1 days ago

This seems like a straightforward question about share types. I'll focus on the key details - the share has a par value of 100.00 and pays a fixed 2.0% dividend annually. That sounds like a preference share to me.

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Britt

8 days ago

Hmm, a fixed dividend of 2% on a par value of 100? That sounds like a preference share to me. I bet the company is trying to lure in some risk-averse investors with this one.

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Kris

14 days ago

I agree with Rory, because preference shares usually have fixed dividends.

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Rory

2 months ago

I think the answer is D) Preference share.

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