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| 1. |
Difference Equity and preference shares |
| Answer» There are following basis of difference :-1. Participation in Management : Equity shareholders have full right to participate in management, while on the other hand, preference shareholders have no rights.2. Sequence of Dividend : Dividend is paid to preference shareholders before the equity shareholders.3. Sequence of Refund of Capital : On winding up of the company, capital is refunded to preference shareholders and then to equity shareholders.4. Refund of Capital during Life : Company cannot be refund equity capital during its life, but Capital can be refunded in case of redeemable preference shares. I hope this will be helpful to you! :) | |