Answer Posted / rajesh kumar soni

Share is the small part of capital.

Equity share is the real capital of company , in this
equity share holder is the real owner of the company and
share the profit and losses on the basis of capital. It is
more risky and more profitable.

While preferance share is the also part of capital of
company but it share the profit and loss on the basis of
persents.it has right to get dividend before equity share.
It is less risky than equity share.
Ex. 6% preference share.

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