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1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders.
2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company.
3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
Detailed answer here: http://financenmoney.in/types-of-share/
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoShare capital is funds raised by issuing shares in return for cash or other considerations.
Debenture is any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A debenture is documented in an indenture
Wiki User
∙ 9y agoPreference shares has the priority in terms of payment into ordinary shares as well as preference shares receives fixed percentage of interest even in case of loss while ordinary share has the lowest priority of payment and receivest the dividend in last only in case of profit.
Wiki User
∙ 9y agoOrdinary shares are those which issue to normal shareholders which are last in payment priority list and only receives dividend in case of profit and liquidity is good.
Preference share has preference over payment form common share capital and it receives fixed percentage of interest even in case of loss to business.
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Explain the difference between share of customer and customer equity.?
Explain the difference between share of customer and customer equity
What is the difference between preference share and debentures?
Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan. Debenture bear fixed interest and its a TAX deductible expense. Company may goes into liquidation if it fails to pay interest on debenture. on the other hand company pay wish to choose not paying any dividend to preference share holder in any given period. debenture holder are lender to company Preference share holder owns the company
Difference between issued share capital and equity share capital?
The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class of capital
What is the difference between a bondholder and a stockholder?
Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Why preference share is known as Hybrid security?
Pref. Share are combination of equity & debt. They receives interest like bond. And treated as capital stock in b/s. It can be converted into equity or debenture thats why it's called hybrid security
What is difference between equity and preference share?
ood job on your time line in 1763 the answer is they are all the same
How can a company rise capital?
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
Difference between share capital and owner equity?
Owners equity is that portion of capital which is invested by actual owners of business while share capital is that portion of capital which is invested by third parties or investors in business like general public etc.
What is the difference between return on total equity and return on common equity?
Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.
Who will paid first debenture holders or preference share holders?
Debenture holders will get preference over preference shareholders
