WHAT IS THE DIFFRANCE B/W THE PREFERENCE SHARES AND EQUITY
SHARES....
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Answer / subhashini
Preference Shareholders receive the returns as dividends in
fixed rate and have priority over common shareolders.
Equity shareholdres have not fixed rate on dividend and it
vary from year to year depending the earnings and decision
of the Board of Directors.the payment to equity
shareholders is not a legal obligation.
| Is This Answer Correct ? | 9 Yes | 0 No |
Answer / suresh yadav
preference share holders get first preference while
distributing the dividents, but they have not voting rights
in the copmany.
if the co. decides to distribute divident, it is first
given to the PS holders, n the normal share holders get the
remaining, but again normal share holders get voting rights
| Is This Answer Correct ? | 9 Yes | 1 No |
Answer / karuna
preferance shares:- during the continuance of the company
the share holders be assured of preference dividend i.e.
dividend prior to that is paid on equity shares at a
stipulated rate or fixed amount
equity shares:-this class of shares confer the right to
either a fixed dividend or repayment of pre determined
amount of capital in the event of winding up of the company
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / shahid raza, pgdm,l.b.s,g.noid
Prefrence Share: It provides a right to the shareholder to get dividend at a fixed rate firstly but not to participate in operating activities and voting.
Equity Share: It provides a right to the shareholder to participate in voting and all operating activities. The dividend rate for equity shareholder is not fixed. Whatever will remain after distributing profit among debenture holders and prefrence shareholders. equity shareholder will keep it.
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Answer / soumya ranjan barik cma
IN COMPANIES ACT THE REAL OWNER OF COMPANY IS EQUITY SHAREHOLDER. THEY HAVE TAHE PART ALL DECISION IN THE COMPANY.
BUT IN PREFERENCE SHARE HOLDER ARE THE STAKEHOLDER TO TAKE THE DEVIDEND ONLY.THEY HAVE NO RELATION TO PROFIT OR LOSS OF COMPANY
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