Business Studies, asked by Aayush9591, 1 year ago

Difference between redemption preference share and shares

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Answered by Answers4u
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Redeemable preference shares are those shares in which the amount would be returned by the company after a fixed period.  These shares do not have voting rights or the right to dividend. They get only a fixed percentage as interest.  On the other hand Equity shares are those in which amount will not be returned by the company till the winding up process.  They are entitled to voting rights and share in the dividend.

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