difference between Equity Capital and Preference capital?
Answers were Sorted based on User's Feedback
Answer / vikas
equity share holders who have a major no. of shares have a
right to attend a board of director meeting but in case of
preference share holders doesnot get any right
|Is This Answer Correct ?||37 Yes||25 No|
Answer / vishal sinha
Pref.share holders are those who cannot take decisions for
the company.however an equity share holder can take
decisions for the company and can obtain the profit or loss
incurred by the company.
|Is This Answer Correct ?||25 Yes||13 No|
Answer / satya kishore
equity capital means owners funds where these share holders
will not get any fixed dividends their return on capital
depends on the profits of the company .
preference share capital means these share holders have
preference over equity capital the will get fixed dividends
as per rate fixed
|Is This Answer Correct ?||14 Yes||4 No|
Answer / nancy
Equity shareholders are the one who have ownership rights in
the company . They are eligible to get dividend and whenever
in case of winding up of the company or distributions of
income is there , they are the last one to get their shares.
They have voting right and participate in management of a
Preference share holders can be called as hybrid between
debt and equity. If the company has earned profits , then it
can declare dividend to them but unlike Debt, company is not
obliged to pay them in case of loss. They cannot do
compulsory winding up of company (unlike Debt) but whenever
profits are distributed, they are given preference over
equity shareholders . They do not have voting rights and do
not generally participate in management of company.
|Is This Answer Correct ?||12 Yes||2 No|
Answer / shanti
The capital which is collected from equity share holders is
known as equity capital and the capital which is collected
from prefernce share holders are known as prefernece
capital.The differnce between equity and prefernce capital
is the prefernce share holders will have prferntial rigths
compare to equity shareholders ,prefernital rights in
terms of payment of dividend and in terms of repayment of
capital at the time of winding of company
|Is This Answer Correct ?||14 Yes||7 No|
Answer / suresh
preference share holders take dividends constantly some
amount.eqity capital is capital of owners
preference capital was not owners capital they borrow some
money from out side of the organisation.
preference share holders have some limit period to earn
dividend but equit share holders doesnot have specifis
from the profit we will give the dividend to preference
after giving devidend to preference share
holders,remaining they will share remaining income or
|Is This Answer Correct ?||7 Yes||0 No|
Equity shareholder r the real owner of the company.They get
dividend after paying dividend to preference shareholder
and other obligation.They take part in company general
meeting and play a advisory role.
preference sharehoder r creditor to the company. company
have to pay fixed divedend to them but it depend on the
natute of the preference shareholde like what type of
shareholder he/she is ex.
on the basis of this natue preference sareholder get right
form the company.
|Is This Answer Correct ?||7 Yes||1 No|
Answer / jomi
Equity share capital are the owners of the company,and they
would recieve income as divident, they can take decisions
for the company
preference shareholders receive income on a periodic
intervals whether it is profit or loss
|Is This Answer Correct ?||7 Yes||1 No|
equity capital is nothing but the ownership capital there is
no compulsion on dividend whereas the preference share
capital is that capital the owner of which gets a higher
preference than that of equity shareholders in terms of
share in profits as dividends
|Is This Answer Correct ?||7 Yes||2 No|
Answer / manminder kalra
eqity shareholder's are real owner of the company. They has
a right to participate in the company meeting .they has a
voting right also. They do not received a fixed rate of
prfrence shareholder's are not the real owner's of the
company. but they get a dividend in a fixed rates. if any
cases company is not able to pay a dividend in a particular
year. then company will pay a 2 year dividend in the next
year. prefrenceshareholder's has not right to attend the
meeting or the company and has no voting right.
|Is This Answer Correct ?||6 Yes||1 No|
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