What is the difference between equity share and preference share?

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Solution

Equity shares provide the capacity to voting rights for its holders while preference shares do not provide voting rights to its holders.

The dividends provided on equity shares are dependent on the performance of the company while the dividends on preference shares are fixed.

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What Are Equity Shares

Preference Shares

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The term 'redeemable' is used for

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Niyati wants higher and certain returns and also wants the safety of capital. What will she choose amongst the preference share and equity share ?

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