The document compares equity shares and preference shares, highlighting that equity shares do not have preferential rights while preference shares do, specifically concerning dividend payments and capital returns during winding up. It categorizes preference shares into types such as redeemable, irredeemable, convertible, non-convertible, participating, and non-participating, each with distinct characteristics. It provides an example of participating and non-participating preference shares regarding entitlement to surplus profits from the company.

3. 1 EQUITY SHARE
2 PREFARENCE SHARE
1 EQUITY SHARE : Equity share are those which are
not prefarence shares in other words those are shares
which do not enjoy any preferential right either in
respect of payment of dividend capital at the winding
up of the company

4. Preferance share are those which have preferencial right
to the payment of dividend during the life –line of the
company return of capital when the company in wind
up .

5. 1 Redeemable prefarence
share
2 Irredeemable prefarence
share
3 Convertible preferance
shaere
4 Non convertible
preferance share
5 paricipating prefarence
share
6 Non participating
prefarence share
7 cumulative prefarence
share
8 Non cumulative
preferance share

6. 1 Redeemable prefarance share : Redeemable
prefarence share are those share which are redeemed
or repaid after the expiry of a stipulate period per
the companies act 1988 a company can issue
redeemable prefarence share redeemable with in 20
years from the date of issue.
2 Irredeemable prefarence share : Irredeemable
prefarence share are those share which are not
reedemed before a stipulated period it do not have a

7. . Convertible prefarence share
example
A B
20,000×10= 2,00,000
Nan covrtable prefarence share

8. 6 participating preference share : participating preference
share holder are entitled to the surplus profit of the company in
addition
to preference dividend surplus profit incumulated by preference
dividend and equity
Example:
equity share preference share holder
1,00,000 share ×15%dividend=15,000 surplus
profit
7 Non participating preferance share : Non participating preferance
share holder are not entitied to share surplus profit and surplus
company
2021=5,00,000
2022=5,00,000
2023=10,00,000

9. Xyz
company