Question

i am kavita
plz ......................
ans.... my que .....

difference between equity share and preference share

Answer 1

Hello Mate,

Equity shares are also known as Ordinary Shares. While Preferenceshareholders enjoy the benefit of receiving their dividend distribution first; the equityshareholders enjoy voting rights in major company decisions, including mergers or acquisitions.

Preference shares have the right to receive dividend at a fixed rate before any dividend is paid on the equity shares. 



Hope this helps you