Question

differentiate between equity share and preference share on the basis of rate of dividend​

Answer 1

Answer:

equity share:Also known as ordinary shares. Equity share is the foundation of the company as it raises fund. These cannot be converted to preference shares.

Equity shares do not have right to receive dividend

Under this the rate of dividend is fluctuating.

Voting rights under general meeting.

These are considered as ordinary shares and thus they do not have any types.

During liquidation, shareholders will have residual right over the asset even after the repayment to preference shares of the company They are primarily responsible for the management of the company

preference share: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.