difference between Equity Capital and Preference capital?
- 42 Answers
- 88995 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / 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
company.
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 |
Post New Answer View All Answers
What does the government do to curb the revenue deficit?
Describe the difference between being a manager and a leader and a follower?
What is difference between mergers, acquisitions and takeovers?
Give Any Three Advantages of Joint Stock Company?
What are the different types of trading that exist?
What is the difference between charge card and credit card?
What Is The Role Of Bank Supervision?
Name the financial institution built by industrial development bank of india (idbi)?
Is the Indian economy in the developing, underdeveloped or the developed state?
What motivates you to do your best while working?
What are your views on demonetization?
What are the features of debentures?
What is the benefit of nationalization on Indian Banks?
What are the differences between cost accounting and financial accounting?
What are Basel norms in context of Banking?
