Question

Three Difference Between Equity shareholder and preference shares holders​

Answer 1

Don't know xd...

sorry..

Answer 2

Answer:

Since in equity market there is high risk therefore, the equity shareholders are the real bearer of the company because they have a residual share in the liquidation of the company. Whereas, in preference shares, the shareholders have a preference with respect to higher claims on earning and the dividend rate is fixed.

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. These can be converted to equity shares

Dividend

Equity shares do not have right to receive dividend

Under this the rate of dividend is fluctuating

Under preference shares, based on time, cumulative or non-cumulative are entitled for the dividend

Here, the rate of dividend is fixed

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