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Who is a preference share holder?

Updated: 9/16/2023
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Wiki User

14y ago

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There are 2 types of shareholders
1.Equity
2. Preference
preference shareholders have preference in the payment of dividend over equity shareholders. Usually their % of dividend is fixed at the time of issue.
For further details check out this link
http://www.legalserviceindia.com/company%20law/com_2.htm

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14y ago
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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 are different of stock holder and share holder?

a stock holder is a person who owns something while the share holder owns 5% of something. example: a stock holder owns a company while the share holder owns 5% of the company.


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.


Who will paid first debenture holders or preference share holders?

Debenture holders will get preference over preference shareholders


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.

Related questions

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


Which stock pays dividends and holders have voting rights?

preference shareholder can get dividend on fixed based and preference shareholder not have voting rights and equity share holder has right to vote and to get dividend


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


What are different of stock holder and share holder?

a stock holder is a person who owns something while the share holder owns 5% of something. example: a stock holder owns a company while the share holder owns 5% of the company.


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 is meant by preference share?

What will happen to my preference shares If there is a merger?


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.


Who will paid first debenture holders or preference share holders?

Debenture holders will get preference over preference shareholders


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.


Is alchemist redeemable preference share safe?

100% you should try to invest in redeemable preference share. because client get bond on investment. no need to wait for long time.Alchemist Redeemable Preference Share visit here for 100% guaranteed investment


What is the difference between a normal and a participating preference share?

what is defference between normal and preference shares