2. Preference share:
● Preference shares are shares in a company that are owned
by people.
● Who have the right to receive part of the company's profits
before the holders of ordinary shares are paid.
● They also have the right to have their capital repaid if the
company fails and has to close.
3. Equity Share:
● Equity shares are the main source of finance of a firm.
● It is issued to the general public.
● Equity shareholders do not enjoy any preferential rights
with regard to repayment of capital and dividend.
● All the equity shareholders collectively are the owners of
the company.
4.
5. Terms of issue:
● Shares can be issued at Par or at a Premium or at Discount.
PAR : When share are issued at the price equal to the face
value it, is known as issue at par.
PREMIUM: When shares are issued at a price higher than the
face value, it is known as issue at premium.
DISCOUNT: When shares are issued at a price lower than the
face value, it is known as issue at discount.
