Which of the following statements about preference shares as a source of capital for a company is correct?
A.
Preference shares are a form of loan capital which carry lower risk than ordinary shares
B.
Preference shares are a form of equity capital which carry higher risk than ordinary shares
C.
Preference shares are a form of loan capital which carry higher risk than ordinary shares
D.
Preference shares are a form of equity capital which carry lower risk than ordinary shares