difference between Equity Capital and Preference capital?
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Answer Posted / ashish gandotra
both these sources of capital are lenders to the company.
equity shareholders have right on the residual earning of
the company. They are owners of the compant and have right
to attend the AGM. Rate of dividend to them is not fixed
and depends on company earnings.
Prefrence shareholders are not the owners of the company,
but have prefential right over equity shareholders in
relation to dividend declaration by the company. rate of
dividend is fixed in their case.
| Is This Answer Correct ? | 43 Yes | 6 No |
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