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difference between Equity Capital and Preference capital?
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Answer Posted / nirali
Equity shares holders are owners of the company. Equity
shareholders have voting rights and also they have right to
participate in the management of the company.
While, Preference shares are those shares which enjoy
preference as regards payment of dividend and repayment of
capital.they dont have voting rights and during winding up
of the company, preference shareholdersget first preference
for the repayment of capital.
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