Question

what is the difference between preference shares and equity shares??

Answer 1

EQUITY SHARES ....

Equity shares are the main source of finance of a firm. It is issued to the general public. Equityshareholders do not enjoy any preferential rights with regard to repayment of capital and dividend.

PREFERENCE SHARES . .. are shares in a company that are owned by people who have the right to receive part of the company's profits before the holders of ordinary shares are paid.