{"id":3092,"date":"2021-07-08T15:10:35","date_gmt":"2021-07-08T09:40:35","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=3092"},"modified":"2021-08-31T10:34:37","modified_gmt":"2021-08-31T05:04:37","slug":"difference-between-equity-share-and-preference-share-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/difference-between-equity-share-and-preference-share-all-you-need-to-know\/","title":{"rendered":"Difference Between Equity Share and Preference Share – All You Need to Know"},"content":{"rendered":"\n

When a company issues shares, a part of its ownership is offered for sale. So when you buy shares of a company, you are actually becoming part-owners of the company in proportion to your shareholding. For example, if a company offers 1 lakh shares and you buy 10,000 shares, it means you now own a 10% stake in the company.<\/p>\n\n\n\n

There are essentially two types of shares<\/a> that companies usually offer – equity<\/a> shares and preference shares<\/a>. Although both these types of shares<\/a> offer investors ownership in the company, they are different from one another. What is the difference between equity shares<\/a> and preference shares?<\/p>\n\n\n\n

Let\u2019s explore the difference between equity share and preference share. But, before we get to that, let\u2019s look at a brief overview of equity share and preference share.<\/p>\n\n\n\n

This article covers:<\/strong><\/p>\n\n\n\n