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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.

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What are types of share capital?

Following are different types of share capital. 1 - Preference share capital 2 - Common share capital


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 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.


is the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?

The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.


What are the disadvantages of share capital?

Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.

Related Questions

Who is a prefrence share holder?

A prefrence share holders are those who take less risk i.e whose rate of dividend is fixed,if a company has less or much more profit he has fixed rate


What are types of share capital?

Following are different types of share capital. 1 - Preference share capital 2 - Common share capital


Do you use the authorised share capital or issued share capital when getting the dividends declared?

issued share capital


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 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 nominal share capital?

Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.


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 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 the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?

The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.


What is ordinary share capital?

Ordinary share capital is that type of share capital which receives share in profit in last or after all other third parties liabilities as well as preference share holders.


What is a share capital?

This is the sum of money the shareholders pay into which is called the share capital This is the sum of money the shareholders pay into which is called the share capital