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Want is equity and preference shares With any examples pls
Answers (2)
Equity shareholders are basically considered as owner of a company where as preference shareholders are first to get dividend and most probably preference share have fixed dividend Preference share are less risky then equity Equity share example- Retained earning and common stock Preference share ex- convertible shares
These are just 2 kind of shares. Shares as well know is a part of share capital. Equity shares give ownership rights in the company and shareholders thus enjoy voting rights as well. Preference shares are ones which get preference in payment of dividend which is generally fixed for them. At time of winding up too, preference shareholders get priority. Equity shareholders are paid in last depending on whatever surplus remains. News that you listen around that share of a company rose by so much and fell of other, that's about equity share of company.
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