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प्रश्न
What is meant by a 'Share' ? Give any two differences between 'Preference Shares' and 'Equity Shares'.
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उत्तर
Share refers to a unit into which the share capital of a company is divided. It includes the stock of the company and represents ownership claims on business.
| Basis of Difference | Preference Shares | Equity Shares |
| Participation in Management | Preference shareholders have right to participate in the management only in special circumstances. | Equity shareholders have right to participate in management. |
| Sequence of Dividend | Fixed rate of dividend is received | Dividend to equity shareholders is paid only if there is surplus after paying off preference shareholders |
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