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Who different between equity shares & preference share?
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Who different between equity shares & preference share?
Preference Shares:
1. Preference Shares are entitled to a fixed rate of dividend
2. Dividend on preference shares is paid in priority to the equity shares.
3. Preference share have preference as regards to refund of capital over equity capital.
4. Redeemable Pref. share are redeemed by the company on expiry of the stipulated period.
5. A company cannot issue bonus shares and rights shares to preference share holders.
6. Voting right of preference shares is restricted.
7. These shares can be converted.
8. Arrears of dividend may accumulate in certain cases.
9. No right to participate in management.
Equity Shares:
1. The rate of dividend on equity shares is not fixed and depends upon the availability of net profit.
2. Dividend on equity shares is paid only after the preference dividend has been paid.
3. Equity share capital cannot be paid before preference capital.
4. Equity shares cannot be redeemed.
5. The bonus shares and rights shares can be issued to existing equity shares.
6. Any equity shareholder can vote on all matters.
7. These shares cannot be converted.
8. There is no provision to pay arrears of dividend.
9. Equity share holders have right to participate in management.
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Who different between equity shares & preference share?
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Who different between equity shares & preference share? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Who different between equity shares & preference share? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Who different between equity shares & preference share?.
Who different between equity shares & preference share? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Who different between equity shares & preference share? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Who different between equity shares & preference share?.
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