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Difference Between Equity Shares And Preference Shares
Difference Between Equity Shares And Preference Shares
A company may issue equity shares or preference shares, depending on its needs and costs. Both methods of raising come with their pros and cons. Both methods of raising come with their pros and cons.  A person should choose these shares according to his or her investment style and needs.

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Companies require money to carry out their business operations or for the expansion of business. In short, money is the lifeline of any business and it can be difficult for the owners to meet all the cash requirements by themselves.

One of the methods of raising capital for businesses is by issuing shares of a company. A company divides its capital into small parts of equal value and each part is called a share. Each share of a company carries in itself a part of the ownership of a company.

It is a popular way of raising money for companies and the public to get a part in the ownership of the company and benefit mutually from the growth of the company. There are two types of shares: Companies require money to carry out their business operations or for the expansion of business. In short, money is the lifeline of any business and it can be difficult for the owners to meet all the cash requirements by themselves.

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One of the methods of raising capital for businesses is by issuing shares of a company. A company divides its capital into small parts of equal value and each part is called a share. Each share of a company carries in itself a part of the ownership of a company.

It is a popular way of raising money for companies and the public to get a part in the ownership of the company and benefit mutually from the growth of the company. There are two types of shares: Equity shares and Preference Shares.

 

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