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difference between Equity Capital and Preference capital?
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Answer Posted / ch.bhanuchander
equity share holders are the real owners of the company they have the voting rights in the AGM and they have the right to get the bonus. coming to preference share holders they get a fixed rate of dividend only while the liquidation of the company. Firstly gives preference to this share holders only.
Equity share holders = Bonus + Dividend
Preference share holders = Dividend
Debenture holders = interest
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