Question

Meaning of Equity Shares and Preference Shares?​

Answer 1

Answer:

Definition. Also known as ordinary shares. Equity share is the foundation of the company as it raises fund. These cannot be converted to preference shares. Preference shares are the shares which promise the holder a preference over the equity shares.

hope this will help u ❤️❤️

Answer 2

Equity Shares and Preference Shares

Answer:

Equity Shares :

Shares that are not preference shares are called as "Equity Shares" that is, these shares don't have preferentcial rights for payment of dividend and repayment of capital.

Type :

a) Equity Shares with Normal Voting Rights.

b) Equity Shares with Differential Voting Rights.

Preference Shares :

Preference Shares are shares that carry preferentcial rights as to payment of dividend and repayment of their capital.

Types :

a) Cumulative Preference Shares.

b) Non-Cumulative Preference Shares.

c) Redeemable Preference Shares.

d) Irredeemable Preference Shares.

e) Convertible Preference Shares.

f) Non-Convertible Preference Shares.

g) Participating Preference Shares.

h) and, Non-Participating Preference Shares.

Thus,

that's all the explanation and types of each share.

:)