Difference Between Equity and Preference Shares

EQUITY SHARES VS PREFERENCE SHARES

1. PREFERENCE OF DIVIDEND: The preference shareholders have the preferential right to dividend over the equity shareholders.

2. PREFERENCE OF CAPITAL PAYMENTS: The preference shareholders have preferential rights on capital payment over equity shareholders. 

3.VOTING RIGHTS: The equity shareholders enjoy the voting rights in the company, whereas the preference shareholders do not get any voting rights, except in cases where their interest is influenced. 

4.REDEEMABLE: Preference share may be redeemed at the will of the company whereas equity shares are redeemed only at the time of winding up of the company. 

5. OWNERSHIP: Equity shareholders are the owners of the company, whereas preference shareholders are not the owners of the company.