Question

Distinguish between equity and preference shares (any four).

Answer 1

Basis of Difference	Equity shares	Preference shares
Face value	Equity shares have less face value than preference shares value.	Face value is higher.
Franchise	Equity shares get franchise.	Franchise is not here.
Payment of Dividend	Equity shares are paid dividend in the end.	Preference shares are paid dividend well in advance.
Risk	Risk is high here.	Risk is little here.