difference between Equity Capital and Preference capital?
Answer Posted / agraj tripathi
EQUITY SHARE:
EQUITY SHARES are shares whose profit sharing
depends on the PROFIT MAKING of the Company.
Dividends to Equity Share holders is optional
and at company's discretion as they being the part of
management knows the financial condition of a business.
equity share holder can take decisions for the
company and can obtain the profit or loss
incurred by the company.
PREFERENCE SHARE:
They get dividend at a fixed rate of interest,
irrespective of the Profit Making of the Company.
In preference share it is the preference over equity shre
holders for profits at the time of winding up.
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