what is the difference between--(equity and preference share),(equity and debt), and is there any similarity between preference share and debt?
1 Answer(s)
Binny
Equity is nothing but shares in the company. By having equity you are on of the owners in a company.
Preference Share are a special kind of equity / shares that has special rights and hence the holder gets a preference. Typically preference shares are issued to institutional investors and normal shares to retail investors.
Debt is nothing but loan - a company borrowing money takes on debt and they have to repay the debt along with the interest.
May 24 2013 06:41 PM
Preference Share are a special kind of equity / shares that has special rights and hence the holder gets a preference. Typically preference shares are issued to institutional investors and normal shares to retail investors.
Debt is nothing but loan - a company borrowing money takes on debt and they have to repay the debt along with the interest.