Preference and Equity Share Difference

There is great difference between preference shares and equity shares in terms of characteristics and conditions. Preference shares have the characteristics of equity as well as debt instrument. On the other hand, equity shares only represent ownership in the company. Some of the basic differences between preferred and equity shares are given below:

Difference Between Preference and Equity Share

Distinction Basis Preference Share Equity Share

Preference Right of Dividend Payout

Preference dividend is paid before the equity dividend amount. Payment of equity dividend amount does not have the priority over the payment of the preference dividend.

Preference Right of Repayment of Capital Amount

Preference share has the priority of capital repayment over the equity share capital.

Page: 1 2

kasi

View Comments

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

2 years ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago