Different kinds of shares

1. Kinds of shares
Equity Share Meaning
An equity share, normally known as ordinary share is a
part ownership where each member is a fractional owner
and initiates the maximum entrepreneurial liability
related with a trading concern. These types of
shareholders in any organization possess the right to
vote.
Features of Equity Shares Capital
 Equity share capital remains with the company. It is
given back only when the company is closed
 Equity Shareholders possess voting rights and select
the company’s management
 The dividend rate on the equity capital relies upon
the obtainability of the surfeit capital. However,
there is no fixed rate of dividend on the equity
capital
Preference Shares?
Preference shares, more commonly known as preferred
stock, are shares of an enterprise’s stock with dividends
that are paid out to the members before equity shares
dividends are circulated. If the enterprise enters
insolvency, the members with preferred stock are
designated to be paid from company assets. Most of the
preference shares have a fixed dividend, while normally

2. do not. Preferred stock shareholders do not possess any
voting rights, but equity shareholders typically do.
Features of Preference Shares :
Preference shares are a long-term source of finance
The dividend payable on preferenceshares (PS) is usually
higher than the debenture interest
Preference shareholders (PSH) get a fixed rate of
dividend regardless of the volume of profit
Difference between preference and equity shares