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difference between Equity Capital and Preference capital?
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Answer Posted / manminder kalra
eqity shareholder's are real owner of the company. They has
a right to participate in the company meeting .they has a
voting right also. They do not received a fixed rate of
dividend.
prfrence shareholder's are not the real owner's of the
company. but they get a dividend in a fixed rates. if any
cases company is not able to pay a dividend in a particular
year. then company will pay a 2 year dividend in the next
year. prefrenceshareholder's has not right to attend the
meeting or the company and has no voting right.
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