Equity share has the second priority of capital repayment over the preference share. | Rate of Dividend | The rate of dividend is fixed for the preference share. | The rate of equity share dividend may vary from time to time depending upon the terms and conditions made by member and directors. |
Dividend Arrears | Arrears of the dividend may mount up for these shares. | Arrears of equity shares can not be mount up in any case. |
Convertibility | They may be converted. | They can not convert |
Market Value Fluctuation | Market value of preferred share normally does not fluctuate | Market value of equity share fluctuates according to market conditions. |
Voting Rights | Preferred share holders have voting rights only at their class meetings but they do not have other voting rights. | Equity share holders commonly have voting rights. |
Right of Premium on Redemption | Preferred share holders have right to gain premium on redemption. | Equity share holders do not have a right to receive premium on redemption. |
Redeem Ability | They are redeemable throughout the entire life of a firm. | They are not redeemable throughout the entire life of a firm unless a firm makes a decision to buy back its shares. |
Related
AMI AMRIT BIO GROUP TE REDEEMABEL PREFARENCE SHERE YA KAJ KORCHI ATE KI KONO RISK ACHA TA AMAKE JANA\LE KHOUP UPAKER HOBE CELL NO-9153373309
preference share equity share se achha hai. or isme money save hai.
Realy superbbb
Superb contents is here
just i want to ask which is better interms of investment in the market pref. share or eq. share.
it is a very good and short and precise note