BASIS OF DIFFERENCE <\/strong><\/td> PREFERENCE SHARES <\/strong><\/td> EQUITY SHARES <\/strong><\/td><\/tr> RIGHT TO DIVIDEND <\/strong><\/td>\n Dividend is paid on Preference shares before it is paid on the Equity\n shares.\n <\/td> | \n Dividend is paid on the equity shares after it is paid on the\n preference shares.\n <\/td><\/tr> | RATE OF DIVIDEND <\/strong><\/td>\n Rate of dividend may be fixed on these shares.\n <\/td> | \n Rate of dividend is proposed by the Board of Directors each year.\n <\/td><\/tr> | ARREARS OF DIVIDEND <\/strong><\/td>\n If Preference shares are Cumulative Preference Shares, the dividend\n gets accumulated and will be paid before any payment of dividend to equity\n shareholders.\n <\/td> | \n Dividend is declared every year. In case, dividend is not declared\n during the year, it is not accumulated to be paid in the coming years.\n <\/td><\/tr> | CONVERTIBILITY <\/strong><\/td>\n Preference shares may be converted into equity shares, if the terms\n of issue so provide.\n <\/td> | \n Equity shares are not convertible.\n <\/td><\/tr> | REDEMPTION <\/strong><\/td>\n Preference shares are redeemed on due date.\n <\/td> | \n A company may buy-back its equity shares.\n <\/td><\/tr> | VOTING RIGHTS <\/strong><\/td>\n Preference shareholders have voting rights only in special\n circumstances.\n <\/td> | \n Equity shareholders have voting rights in all circumstances.\n <\/td><\/tr> | REFUND OF CAPITAL <\/strong><\/td>\n In case of winding up of the company, the preference share capital is\n repaid before the equity share capital is paid.\n <\/td> | \n In case of winding up of the company, the equity share capital is\n repaid after the preference share capital is paid.\n <\/td><\/tr> | PARTICIPATION IN MANAGEMENT <\/strong><\/td>\n Preference shareholders do not have a right to participate in the\n management of the company.\n <\/td> | \n Equity shareholders have a right to participate in the management of\n the company.\n <\/td><\/tr> | REQUIREMENT FOR FORMATION <\/strong><\/td>\n A new company cannot be formed only with preference shares.\n <\/td> | \n A new company can be formed only with the equity shares.\n <\/td><\/tr> | TYPES <\/strong><\/td>\n There are 8 types of preference shares.\n <\/td> | \n There is no such type of equity shares, however sweat equity shares\n are covered under this category.\n <\/td><\/tr><\/tbody><\/table>\n","protected":false},"excerpt":{"rendered":" EQUITY SHARES Equity Shares are those shares which are paid dividends only when profits are left after the preference shareholders have been paid fixed rate of dividends. In other words, there will be no fixed rate of dividend on the equity shares. Equity shareholders have voting rights and control of the affairs of the company….<\/p>\n Read More “EQUITY AND PREFERENCE SHARES”<\/span> »<\/a><\/p>\n","protected":false},"author":2,"featured_media":2296,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[19,102,56],"tags":[129,130,128],"class_list":["post-2292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-12-accountancy","category-corporate-accounting","category-difference-between","tag-difference-between-equity-and-preference-shares","tag-equity-shares","tag-preference-shares"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2292"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2292"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2296"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} | | | | | | | | | | | | | |