Question

I am kavita
please answer my question

plz.................................
please explain the equity share
and preference share

Answer 1

Preference Shares, as its name suggests, gets precedence over equity shares on the matters like distribution of dividend at a fixed rate and repayment of capital in the event of liquidation of the company.

Answer 2

equity share is main source of finance of a firm . it is issued to the general public. equity shareholder do not enjoy
any preferential rights .



a share which entitles the holder to a fixed dividend whose payment takes priority over that of ordinary share dividends