HSC Board – Easy way to learn and memorized – class 12th – S.P – Notes of business finance – Difference between Equity Shares and preference Share , Distinguish between Equity Shares and preference Share – business finance – Secretarial Practice – Notes, & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.
| Sr.No | Difference point | Equity Share | Preference Shares |
| 1. | Meaning | These are the ordinary shares which can claim dividend and return of capital only after payment to others. | These are the shares which enjoy preference over equity shares in case of dividend and return of capital. |
| 2. | Rate of Dividend | Equity shares are paid dividend at fluctuating rate. | preference share holders get dividend at fixed rate. |
| 3. | Voting Rights | Equity share holders enjoy normal voting rights, through which they participate in the management of the company. | They can vote only on those matters which affect their interest directly. |
| 4. | Face Value | Equity shares are of low face value i.e. Rs. 10/- or even less | preference shares are of high face value i.e. Rs 100/ |
| 5. | Market Value | Market value of equity shares changes as per company’s financial positions and profitability. | Market value of preference shares remains consent. |
| 6. | Risk | equity shares are subject to higher risk | preference shares are subject to less risk |
| 7. | Right Issue/Bonus shares | Equity shareholders are eligible for bonus shares, if issued by the company. | Preference Shareholders are not eligible for bonus shares/right issue, if issued by the company. |
| 8. | Nature of Capital | Risk Capital. | Safe Capital. |