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What are the various types of preference share?
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
What do you meant by prefernce share capital?
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
What is share holders fund?
Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund
Difference between preference share and equity share?
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.
What are merits and demerits of preference share?
DefinitionThe capital of a company is divided into number of equal parts known as shares. Preference sharesAs the name suggests, there have been certain preference as compared to other type of shares. These shares are given two preferences. There is a preference for payment of dividend. The second preference for shares is repayment of capital at the remaining of the profits.Feature of preferences shares1. Preference share have been priority over payment of dividend and repayment of capital.2. Preferences shares do not hold voting rights.a. Cumulative preference shares:- these shares have been a right to claim dividend for those years also for which there were no profits.b. Non cumulating preference shares:- the holders of these share have no claim for the arrears of dividend. They are paid a dividend if there are sufficient profits.c. Redeemable preference share:- neither the company can return the share capital nor the shareholder can demand its repayment.d. Irredeemable preference shares:- the shares which cannot be redeemed unless the company is liquidated are known as irredeemable preference shares.Advantages1. Helpful in raising long term capital for a company2. There is no need to mortgage property on these shares.3. Redeemable preference shares have the added advantages of repayment of capital whenever there is surplus in the company.4. Rate of return is guaranteed.Disadvantages1. Permanent burden on the company to pay a fixed rate of dividend before paying anything on the other shares.2. Not advantageous to investors from the point of view of control and management as preferences shares do not carry voting rights.3. Compared to other fixed interest bearing securities such as debentures, usually the cost of raising the preference share capital is higher.By Golak SahuMBA-Finance
What are the types of preference share?
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
What are the various types of preference share?
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
Does the paid-up capital include preference capital or only equity capital?
Paid in capital includes the preference share capital as well as common share capital as well.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What do you meant by prefernce share capital?
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
What is prefrence share capital?
Preference share capital is that capital which has preference over any other kind of capital and it has fixed interest rate no matter company earning profit or not as well as first of all this capital is cleared at the event of liquidation.
What are types of share capital?
Following are different types of share capital. 1 - Preference share capital 2 - Common share capital
Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
Will preference share capital be deducted while calculating net assets?
As per Companies Act 1956, Preference share capital is regarded as Capital of the company and not Loan. In view of this, it is not to be deducted to ascertain net assets. This is in turn depend on the purpose for which netassets is being ascertained.
What is share holders fund?
Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund
Difference between debenture and preference share?
Preference shares are equity form of capital while debentures are debt form of capital both type of capital has preference to be paid before the normal share capital holders in case of liquidation but interest paid on debentures is tax deductable which means that by paying interest company can save tax as interest reduces the net income of company while preference share holders receive interest after tax deducted net profit.
What are the sources of capital of joint stock company?
different types of shares..equity,,preference
