{"id":579,"date":"2019-05-08T09:37:24","date_gmt":"2019-05-08T09:37:24","guid":{"rendered":"https:\/\/rta.saginfotech.com\/blog\/?p=579"},"modified":"2022-12-29T13:19:57","modified_gmt":"2022-12-29T13:19:57","slug":"differences-between-equity-shares-and-preference-shares","status":"publish","type":"post","link":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/","title":{"rendered":"Top 14 Differences Between Equity Shares and Preference Shares"},"content":{"rendered":"\n<p>If a person wants to open his or her own business or wants to expand the business but does not have enough money to do so. Then the person has only two options i.e. to take a loan from the bank or to divide the finance cost into a unit and then sell it as share in the financial market. The company will buy the shares by which the funds will be raised and will help the person for the startup or the expansion of the business.  <\/p>\n\n\n\n<p>So for this it is\nvery important to know about shares and its types.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is a Share?<\/strong><\/h2>\n\n\n\n<p>A share is a sole unit of the ownership in a company. This is an exchangeable value of a company which goes up and down based on the different market factors. The capital is divided into the shares for raising the capitals. Shares are aka stocks.<\/p>\n\n\n\n<p><strong>Shares can be divided into two types:<\/strong><\/p>\n\n\n\n<p>1) Equity Shares<\/p>\n\n\n\n<p>2) Preference\nShares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. Equity Shares:<\/strong><\/h2>\n\n\n\n<p>Equity shares also called as ordinary shares are the form of part or fractional ownership in which the shareholder has to take the business risk at the extreme. The <strong><a rel=\"noreferrer noopener\" aria-label=\"Equity shares (opens in a new tab)\" href=\"https:\/\/rta.saginfotech.com\/blog\/equity-shares-classification-benefits-drawbacks\/\" target=\"_blank\">Equity shares<\/a><\/strong> are holded by the company members who have the rights to vote. In a company, Equity shares play a very important role in raising long-term capital.  <\/p>\n\n\n\n<p>Ownership of a company is represented by the Equity shares and the capitals that are raised by the issue of such shares is called the ownership capital or the owner&#8217;s fund. They are the person who created the company.<\/p>\n\n\n\n<p>The Equity shareholders receive the company\u2019s profit in dividend form which is not fixed because there is a fluctuation in it as per the profit. It means that if there is more profit then they will receive more dividend and vice versa.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Classifications of Equity Shares:<\/strong><\/h3>\n\n\n\n<ul>\n<li>Authorized Share Capital <\/li>\n\n\n\n<li>Issued Share Capital <\/li>\n\n\n\n<li>Subscribed Share Capital <\/li>\n\n\n\n<li>Paid Up Capital <\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p><strong><em>Recommended:  <\/em><\/strong><a rel=\"noreferrer noopener\" aria-label=\"What are the Key Differences Between Dematerialisation and Rematerialisation (opens in a new tab)\" href=\"https:\/\/rta.saginfotech.com\/blog\/differences-between-dematerialisation-rematerialisation\/\" target=\"_blank\"><strong><em>What are the Key Differences Between Dematerialisation and Rematerialisation<\/em><\/strong><\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Preference Shares:<\/strong><\/h2>\n\n\n\n<p><a aria-label=\"Preference shares (opens in a new tab)\" href=\"https:\/\/rta.saginfotech.com\/blog\/preference-shares-and-different-types\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Preference shares<\/strong><\/a> are the shares which give the company holders a fixed dividend, whose payment is more prior than the equity share dividends. Capital raised by the issue of preference shares is known as the preference share capital. The preference shareholders do not have any rights to control the event of the firm. In the event of the bankruptcy of the company, the preferred shareholders are paid before the company&#8217;s property.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong> Types of Preference Shares:<\/strong><\/h3>\n\n\n\n<ul>\n<li>Cumulative\n\tPreference Shares\n\t<\/li>\n\n\n\n<li>Non- Cumulative\n\tPreference Shares\n\t<\/li>\n\n\n\n<li>Redeemable\n\tPreference Shares\n\t<\/li>\n\n\n\n<li>Non-Redeemable\n\tPreference Shares\n\t<\/li>\n\n\n\n<li>Convertible\n\tShares\n\t<\/li>\n\n\n\n<li>Non-Convertible\n\tShares\n\t<\/li>\n\n\n\n<li>Participating\n\tShares\n\t<\/li>\n\n\n\n<li>Non-Participating\n\tPreference Shares\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Difference Between the Equity and the Preference Shares:<\/strong><\/h2>\n\n\n\n<p><strong>Given below are the differences between the equity shares and preference shares:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"718\" height=\"911\" src=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2019\/05\/Equity-Preference-Shares.jpg\" alt=\"Differences Between Equity Shares and Preference Shares\" class=\"wp-image-583\" srcset=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2019\/05\/Equity-Preference-Shares.jpg 718w, https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2019\/05\/Equity-Preference-Shares-236x300.jpg 236w\" sizes=\"(max-width: 718px) 100vw, 718px\" \/><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If a person wants to open his or her own business or wants to expand the business but does not have enough money to do so. Then the person has only two options i.e. to take a loan from the bank or to divide the finance cost into a unit and then sell it as [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top 14 Differences Between Equity Shares and Preference Shares<\/title>\n<meta name=\"description\" content=\"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 14 Differences Between Equity Shares and Preference Shares\" \/>\n<meta property=\"og:description\" content=\"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/\" \/>\n<meta property=\"og:site_name\" content=\"SAG RTA Official Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-08T09:37:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-29T13:19:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2019\/05\/d1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Atul Mittal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Atul Mittal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/\",\"url\":\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/\",\"name\":\"Top 14 Differences Between Equity Shares and Preference Shares\",\"isPartOf\":{\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/#website\"},\"datePublished\":\"2019-05-08T09:37:24+00:00\",\"dateModified\":\"2022-12-29T13:19:57+00:00\",\"author\":{\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/f1d42058ffc62145fa2434665852b765\"},\"description\":\"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.\",\"breadcrumb\":{\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/rta.saginfotech.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Top 14 Differences Between Equity Shares and Preference Shares\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/#website\",\"url\":\"https:\/\/rta.saginfotech.com\/blog\/\",\"name\":\"SAG RTA Official Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/rta.saginfotech.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/f1d42058ffc62145fa2434665852b765\",\"name\":\"Atul Mittal\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2c735d1a7a19a0c73db5f3062da65a71?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2c735d1a7a19a0c73db5f3062da65a71?s=96&d=mm&r=g\",\"caption\":\"Atul Mittal\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Top 14 Differences Between Equity Shares and Preference Shares","description":"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/","og_locale":"en_US","og_type":"article","og_title":"Top 14 Differences Between Equity Shares and Preference Shares","og_description":"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.","og_url":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/","og_site_name":"SAG RTA Official Blog","article_published_time":"2019-05-08T09:37:24+00:00","article_modified_time":"2022-12-29T13:19:57+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2019\/05\/d1.jpg","type":"image\/jpeg"}],"author":"Atul Mittal","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Atul Mittal","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/","url":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/","name":"Top 14 Differences Between Equity Shares and Preference Shares","isPartOf":{"@id":"https:\/\/rta.saginfotech.com\/blog\/#website"},"datePublished":"2019-05-08T09:37:24+00:00","dateModified":"2022-12-29T13:19:57+00:00","author":{"@id":"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/f1d42058ffc62145fa2434665852b765"},"description":"Check top14 differences between equity shares and preference shares. Equity shareholders are the owners but preference shareholders are not owners and do not have voting rights.","breadcrumb":{"@id":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/rta.saginfotech.com\/blog\/differences-between-equity-shares-and-preference-shares\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/rta.saginfotech.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Top 14 Differences Between Equity Shares and Preference Shares"}]},{"@type":"WebSite","@id":"https:\/\/rta.saginfotech.com\/blog\/#website","url":"https:\/\/rta.saginfotech.com\/blog\/","name":"SAG RTA Official Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/rta.saginfotech.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/f1d42058ffc62145fa2434665852b765","name":"Atul Mittal","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/rta.saginfotech.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/2c735d1a7a19a0c73db5f3062da65a71?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2c735d1a7a19a0c73db5f3062da65a71?s=96&d=mm&r=g","caption":"Atul Mittal"}}]}},"_links":{"self":[{"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/posts\/579"}],"collection":[{"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/comments?post=579"}],"version-history":[{"count":9,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/posts\/579\/revisions"}],"predecessor-version":[{"id":2688,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/posts\/579\/revisions\/2688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/media\/585"}],"wp:attachment":[{"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/media?parent=579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/categories?post=579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rta.saginfotech.com\/blog\/wp-json\/wp\/v2\/tags?post=579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}