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  • Chart of Difference Between Equity Share and Preference Share

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    Garima Sambarwal
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    Preference shares have preferential rights over equity shares when it comes to dividend payments and repayment of capital. Dividends on preference shares must be paid before dividends to equity shareholders, and preference shareholders have preferential rights to the return of capital in the event of liquidation. Preference shares may be redeemed or converted to equity shares under certain conditions, while equity shares cannot be redeemed or mandatorily converted. Preference shareholders only have voting rights in limited circumstances.

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    Chart-of-Difference-between-Equity-Share-and-Preference-share

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    Preference shares have preferential rights over equity shares when it comes to dividend payments and repayment of capital. Dividends on preference shares must be paid before dividends to equity shareholders, and preference shareholders have preferential rights to the return of capital in the event of liquidation. Preference shares may be redeemed or converted to equity shares under certain conditions, while equity shares cannot be redeemed or mandatorily converted. Preference shareholders only have voting rights in limited circumstances.

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    10 views1 page

    Chart of Difference Between Equity Share and Preference Share

    Uploaded by

    Garima Sambarwal
    Preference shares have preferential rights over equity shares when it comes to dividend payments and repayment of capital. Dividends on preference shares must be paid before dividends to equity shareholders, and preference shareholders have preferential rights to the return of capital in the event of liquidation. Preference shares may be redeemed or converted to equity shares under certain conditions, while equity shares cannot be redeemed or mandatorily converted. Preference shareholders only have voting rights in limited circumstances.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Chart of Difference between Equity Share and Preference share

    Basis of
    Difference
    Equity Share Preference Share
    Equity share has no Preference share has the
    preferential right of receivingpreferential right of receiving
    Meaning
    dividend and repayment of dividend and repayment of
    capital. capital.
    The dividend on preference
    The dividend on equity share is
    Payment of share is paid Before the
    paid after the payment of
    Dividend payment of dividend on equity
    dividend on preference shares.
    shares.
    Rate of Rate of dividend is fixed before
    Rate of dividend is not fixed.
    Dividend issued.
    It may be converted to equity
    Convertibility It can not be converted. share if the terms are provided
    Before issue.
    Buy Back It can be buyback. It can not be buyback.
    It can be redeemed as per
    Redemption It can not be redeemed
    terms in the prospectus.
    Preference Shareholders have
    Equity Shareholders have the
    the rights to vote only in
    Voting Rights rights to vote for any decision
    specific/special
    in all types of circumstances.
    circumstances.

    Participation Equity shareholders have the Preference shareholders have


    in the right to participate in the no right to participate in the
    Management management of the business. management of the business.

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