Question

Difference between equity share and preference share with example

Answer 1

$$°°Equity shares act as a role of ownership in business.. $$

preference shares cannot act as a rolw of ownership in business.

$$°°Equity sharez can be converted into preference shares.. $$

preference shares cannot converted into equity shares...


$$.. Equity shares plays important in the formation of the business.. $$

preference shares cannot plays important in the formation of the business.

$$.. Equity shares - - Redeem shares...
$$.. Preference shares - - debentures


$$. Thnku. $$

Answer 2

Explanation:

Equity shares are the ordinary shares of the company representing the part ownership of the shareholder in the company. Preference shares are the shares that carry preferential rights on the matters of payment of dividend and repayment of capital. The dividend is paid after the payment of all liabilities.