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Differece b/t Equity and Prefferece Capital?

Answers were Sorted based on User's Feedback



Differece b/t Equity and Prefferece Capital?..

Answer / shiva krishna g

Equity share holders are the owners of the company.They
have the right to receive dividends.Preference share
holders has the prference to get fixed rate of interest of
profit for their shares.

Is This Answer Correct ?    23 Yes 2 No

Differece b/t Equity and Prefferece Capital?..

Answer / raghavendra

1.equity is nothing but ownership of the business euity
share holders wud get profit wen company earn the profit
but not fixed rate of dividend 2.prfference share holder
enjoy the prefference right as (a) return of the capital on
wound up of the company (b). fixed rate of divident

Is This Answer Correct ?    4 Yes 0 No

Differece b/t Equity and Prefferece Capital?..

Answer / naveen kumar pasumarthi

acording to the companies act there is no rule to dividend
to the equity share holders

Is This Answer Correct ?    4 Yes 1 No

Differece b/t Equity and Prefferece Capital?..

Answer / rakesh katanguri

equity capital has high risk and high returns also but
prefference capital has no risk and fixed rate of returns

Is This Answer Correct ?    3 Yes 0 No

Differece b/t Equity and Prefferece Capital?..

Answer / nimmasudhakar reddy

Equity share holders can get dividend on company profits,who
are owners of the company.But prefference share holders can
get interest on their share capital amount .equity share
holders have to face more risk but they can get more
benifits also .but preffernce share holders have no risk so
they get fixed amount only

Is This Answer Correct ?    3 Yes 0 No

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