Answers.com > Wiki Answers > Categories > Business & Finance > Investing and Financial Markets > Difference between equity shares and preference shares?

Difference between equity shares and preference shares?

In: Investing and Financial Markets, Stocks, Debentures [Edit categories]

Answer:

1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders.

2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company.

3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.

Detailed answer here: http://financenmoney.in/types-of-share/

Note: There are comments associated with this question. See the discussion page to add to the conversation.

First answer by Nishchint 2006. Last edit by Roshcrazy. Contributor trust: 6 [recommend contributor ]. Question popularity: 6 [recommend question].

[report abuse]

Can you answer these Investing and Financial Markets questions?

	What are the Disadvantages of shopping at a mall?	Answer it!
	What is a zero based budget?	Answer it!
	What are some of the things faced by a transitional society?	Answer it!
	Is marketing management easy?	Answer it!
	How would you describe a spores?	Answer it!

Relevant answers:

What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of...
Difference between debenture and preference shares?
A debenture is a kind of debt. If any organization issues a Debenture to raise funds, the investor becomes a creditor to the business.On the other hand, by purchasing preference shares the investor...
What is the difference between preference share and debentures?
Preference share is less risk prone. When a firm files bankruptcy, the pref. share holders will get their money back (by selling firm's assets)
What is the difference between preference shares and debentures?
Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan.Debenture bear fixed interest and...
What are the difference between equity and preference shares?
Equity, or partial ownership of a corporation, is divided into shares that may (optionally) be of many different classes. There are typically "common" shares and "preferred" shares of classes...