Question

write the difference between equity share and perference​

Answer 1

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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Answer 2

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Equity shares

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

Preference shares are the shares which promise the holder a preference over the equity shares. These can be converted to equity shares.