Question

8. Explain any four features of equity shares.
9. Explain any four features of preference shares.​

Answer 1

Explanation:

The main features of equity shares are:

They are permanent in nature. ... Equity shares are transferable, i.e. ownership of equity shares can be transferred with or without consideration to other person. 4. Dividend payable to equity shareholders is an appropriation of profit.

Preference shareholders have no right to vote in the annual general meeting of a company. These are a long-term source of finance. Dividend payable is generally higher than debenture interest. Right on assets when the company is liquidated.

Answer 2

Explain any four features of equity shares

The equity share capital is held permanently by the company and returned only upon winding up. Equity shares give the right to the holders to claim dividend on the surplus profits of the company. The rate of dividend on the equity capital is determined by the management of the company.

Explain any four features of preference shares

Preference shareholders have no right to vote in the annual general meeting of a company. These are a long-term source of finance. Dividend payable is generally higher than debenture interest. Right on assets when the company is liquidated.