difference between Equity Capital and Preference capital?
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Answer / prashant s patil
equity share holders manages the whole show they are called
come under management where as preference share holders are
liability to company whose interest has to pay by company.
equity share holder as a owner share profit as well as
losses where preference takes only interest, they are not
interested in companies profit or loss.
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Answer / syed mudasir
Difference between Preference and Equity share
1)Preference Shares have 2 preferences first payment of
dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders.
2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company.
3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
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Answer / neha
Equity shares are the ordinary shares which include risk whereas preference shares are those shares whose rate of dividend is fix and in case of liquidation of the company, preference shareholder gets first preference in profits distribution then equity shareholders.Equity shareholders get a right to vote in AGM.
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Answer / ishan kulshretha
equity share capital are the ownered fund and preference share capital are borrowed funds.equity shares are not fixed but preference share are fixed.
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Answer / akanksha
Eqity shares are those shares which do not have
preferential rights in case of payment of dividend and
repayment of capital..It is also known as ordinary
shares..It represents permanent capital..The rate of
dividend depends upon the earnings of company..The equity
shareholders enjoy normal voting rights..
Preference shares are those shares which have preferential
rights in case of payment of dividend and repayment of
capial...It can be considered as ownership capital..The
preference shares do not provide permanent share capital..
They do not enjoy normal voting rights at company
meetings..The preference shareholders get a regular
dividend..The dividend rate is fixed..
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Answer / ch.bhanuchander
equity share holders are the real owners of the company they have the voting rights in the AGM and they have the right to get the bonus. coming to preference share holders they get a fixed rate of dividend only while the liquidation of the company. Firstly gives preference to this share holders only.
Equity share holders = Bonus + Dividend
Preference share holders = Dividend
Debenture holders = interest
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Answer / virat kohli (indian cricketer)
Equity is equity. Preference shares are prefernece shares.
thats all i know
Is This Answer Correct ? | 0 Yes | 1 No |
Answer / suresh
equity capital bought into the bussiness by the owner(share
holder),and they will get profits as well as losses.
preference capital means we are lending money from others
and we will give a fixed rate of interest to them in the a
particular period.
Is This Answer Correct ? | 2 Yes | 5 No |
Answer / ved
in a company equity share and pre.share are both of them
too importent.equity shareholders are the owner of the
company.they have number of rightes then prefrence
shareholder.prefence shareholder can vote in such condition
where they can see that their parts is not secure.
Is This Answer Correct ? | 4 Yes | 12 No |
Answer / happy
preferance share holder will get their dividend wheather
company in profit or loss if they want,is it right?
Is This Answer Correct ? | 4 Yes | 15 No |
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