Answer Posted / 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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