difference between Equity Capital and Preference capital?
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Answer Posted / manoj singh negi (amrapali ins
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.
convertable
non-convertable
commulitive
non-commulitile etc.
on the basis of this natue preference sareholder get right
form the company.
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