what is different between equity shares and preference share
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Equity Shares are the shares that carry voting rights and the rate of dividend also fluctuate every year as it depends on the amount of profit available to the company. On the other hand, Preference Shares are the shares that do not carry voting rights in the company as well as the amount of dividend is also fixed.
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Equity shares represent the extent of ownership in a company. Preference shares come with preferential rights when it comes to receiving dividend or repaying capital. Shareholders receive dividends after all liabilities have been paid off. ... Preferential shares do not have voting rights.
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