Accountancy, asked by Utkarshjaiz2k, 1 year ago

Difference between equity shareholders and preference shareholder ....

Answers

Answered by vikasksingh
2
Key difference is that while Preference shareholders enjoy the benefit of receiving their dividend distribution first; the equity shareholders enjoy voting rights in major company decisions, including mergers or acquisitions. 

A Company can issue two types of shares viz. Equity Shares and Preference Shares. Equity shares are also known as Ordinary Shares.  While Preference shareholders enjoy the benefit of receiving their dividend distribution first; the equity shareholders enjoy voting rights in major company decisions, including mergers or acquisitions. Preference shares have the right to receive dividend at a fixed rate before any dividend is paid on the equity shares. Further, when the company is wound up, they have a right to return of the capital before that of equity shares.
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Answered by doremoon
1
equity shareholder are the real owners of the company and gets fluctuating rate of dividend they also enjoy voting rights  in the company
 where as preference shareholder are not the real owner of the company and gets fixed rate of dividend they dnt have any voting rights in the company

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