Answer Posted / sunita

equity shares pay dividend to share holder but its depends
on the profit of the company and also decision to dividend
declare or not, depend on the companies board of
directors.if they want to retain their profit for the future
investment they can retain. But in preference shares they
pay a fix rate of interest, they don't have share in company
profit. At the time of winding up they gives first
preference to pay the amount.
equity share holders have a voting right to elect in board
of directors but in preference share holders don't have any
such kind of rights

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