difference between Equity Capital and Preference capital?
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Answer Posted / dileep varyani
Company generate equity capital only at the time of
incorporation and holds for life time which u can is like
fixed assets only fixed assets has life but equity remains
same.However equity shareholders recieve dividend of
company usually every year.
And
Preference capital actually company generate in mode of
preference share which is nothing but a short term required
capital for some specifice purpose say for new setup or for
some emergent project. However preference shareholder just
recieve a fixed ratte of interest on their money they
invested in company.
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