anirudhsanthanam

 Profile Answers by anirudhsanthanam Questions by anirudhsanthanam

• Jul 22nd, 2007

 

ordianry shares are eligible for dividend wheras preference is not and ordinary shares get settlement after prefernce shares and ordinary shares are paid only in case of winding up  

vinodkumarsmay1979

• Sep 25th, 2007

 

Preference shares have the preference over ordinary shares when it comes to dividend and repayment of capital

vasudeo007

 Profile Answers by vasudeo007 

• Oct 12th, 2008

 

Ordinary shares better knows as Equity shares have following characteritics:
a. They can participate in Annual General Meeting and vote
b. They do not have any fixed rate of return (dividend)
c.  They get lower priority than preference share holders in case of dividend and winding up of the company

preference share holders have following characteristics:
a. They do not usually participate in AGM and vote
b. They get priority in divided and repayment of capital
c. The rate of return to them is fixed (x% of the face value)
d. They get priority before equity shares

Moreover preference shares may be convertible in equity but other way round is never possible.