Business Studies, asked by Anonymous, 11 months ago


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Explain the Difference between Preference Shares and Equity shares? ​

Answers

Answered by sakshi4062
2

Answer:

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

Answered by Anonymous
13

Answer:

Preference shares :-

  • The Nominal value is higher.
  • There is no control over the management.
  • Voting rights are limited.
  • The risk is lower.
  • It can be convert into Equity shares.
  • They are paid in fixed rate.

Equity shares :-

  • The Nominal value is generally lower.
  • There is control over the management.
  • Voting rights are not limited. They enjoy the voting rights.
  • The risk is more as compared to Preference shares.
  • It cannot be converted.
  • It can be vary depending upon the profit & loss.
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