What are the different types of shares?
Equity shares We also know equity shares as ordinary shares. These shares have voting rights. Equity share is a main source of finance for any company giving investors the right to vote, share market profits and claim on assets. We know a share that is not a preference share as equity share. It doesn’t offer a fixed rate of return. They don’t get a fixed rate of dividends. It entitles the whole of the profit of a company to these equity shareholders, only after paying a fixed dividend to preference shareholders. Advantages of equity shares are it is a permanent source of capital gain and the company has to repay it except under liquidation. With profits, equity shareholders are the real gainers with increased dividends and appreciation in the value of shares. Preference Shares Preference shares are those shares that carry certain special or priority rights. First, dividends at a fixed rate are payable on these shares before they pay any dividend on equity sha