difference between Equity Capital and Preference capital?
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Answer / sri
Equity capital refers to the owners contribution the risk
of loss has to be beared by these equity holders where as
pref....they get their share.at the time of liquidation
pref...holders will b paid first and the remaining is taken
by the equity.
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Answer / damu1707
Equity share holders are actual owners of the business.equity share holders have a right to vote in annual general meeting.
But preferential share holders do not have right to vote and they can get fixed rate of dividend on profits of the company.And repayment of initial investment at time liquidation of business.
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Answer / malu
equity share holders receive dividends from the company.
preference share holders receive a fixed rate of interest.
however, equity share holders receive dividends only after
the preference share holders have been given their returns.
equity share holders thus have to bear the risks, because
even if there are losses, they bear the losses, not the
preference share holders
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Answer / agraj tripathi
EQUITY SHARE:
EQUITY SHARES are shares whose profit sharing
depends on the PROFIT MAKING of the Company.
Dividends to Equity Share holders is optional
and at company's discretion as they being the part of
management knows the financial condition of a business.
equity share holder can take decisions for the
company and can obtain the profit or loss
incurred by the company.
PREFERENCE SHARE:
They get dividend at a fixed rate of interest,
irrespective of the Profit Making of the Company.
In preference share it is the preference over equity shre
holders for profits at the time of winding up.
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Answer / prasad shinde
First At all share capital is the liability of the company.
Equity shareholders are the owners of the company. only they
have voting right in annual general meeting.
preference shareholders have first preference to get
dividend when company earns the profit. then, debentures
holders get dividend and at last Equity shareholders.
preference shareholders have right convert their share in to
equity shares after some period.
equity share capital is permanent capital of the
company. at the time of winding up of the company preference
shareholders get their capital return 1st, then debenture
holders and at last equity shareholders.
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Answer / krishna
equity share holders are the real owners of the company ...they ill have a right to vote in company ...bt tha preference share holders are parties whose though may get a particular percentage ...
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Answer / kavita
EQUITY CAPITAL- shares which are not preference share,are
equity shares.the balance of profit remaining after after
appropriatig prference dividend can be distributed among
the equity share holders as dividend.in case of winding up
of the company the payment is first made to creditors of
the company. PREFERENTIAL CAPITAL- Preference shares are
those which carry a preferential right to payment of
dividend during the life time of company.it has the right
to return of capital when the company is wound up .
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Answer / venkata krishna
shares are 2 types
1.Equity shares
2.Preference shares
Equity share holders are real owners of the company and they are having voting rights and eligible for getting dividends only after preference share holders.
preference share holders are having more preference for getting dividends of the company and getting investments in the case of winding up of the company.
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Answer / nirali
Equity shares holders are owners of the company. Equity
shareholders have voting rights and also they have right to
participate in the management of the company.
While, Preference shares are those shares which enjoy
preference as regards payment of dividend and repayment of
capital.they dont have voting rights and during winding up
of the company, preference shareholdersget first preference
for the repayment of capital.
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