difference between Equity Capital and Preference capital?
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Answer Posted / kavita
EQUITY CAPITAL- shares which are not preference share,are
equity shares.the balance of profit remaining after after
appropriatig prference dividend can be distributed among
the equity share holders as dividend.in case of winding up
of the company the payment is first made to creditors of
the company. PREFERENTIAL CAPITAL- Preference shares are
those which carry a preferential right to payment of
dividend during the life time of company.it has the right
to return of capital when the company is wound up .
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