Question

Difference between equityvshares and preference shares

Answer 1

Equity shares are also known as Ordinary Shares. ... 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.

Answer 2

Equity Shares and Preference Shares. Equity shares are also known as Ordinary Shares. ... 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.