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What are equity. N preference share

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What are equity. N preference share

Posted by Vijay Gupta 8 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Naveen Sharma 8 years, 9 months ago

Ans. An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights.

Preference shares are shares, often with no voting rights, which receive their dividend before all other shares and are repaid first at face value if the company goes into liquidation.

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