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MILLATH COLLEGE OF TEACHER EDUCATIONSubmitted by,SINDHU.S.NAIR (Commerce)TYPES OF SHARESEquity SharesEquity shares are those which do not carry any preferencial treatment in the payment of dividend or repayment of capital.

FEATURES OF EQUITY SHARESDividend on Equity shares not fixed.Winding up of the company.Risk bearers.Right to vote.PREFERENCE SHARESPreference shares are those which carry preferencial treatment in the payment of dividend or re-payment of capital.Preference shareholders have no voting rights.FEATURES OF PREFENCE SHARES*Preference shareholders have the right to claim dividend, according to the terms of issue of shares.*Preference shareholders have also the preferencial right of claiming repaymentof the capital.*Preference shares carry limited rights over the management of the company.

TYPES OF PREFERENCE SHARESCUMULATIVE PREFERENCE SHARESA cumulative preference share is one in respect of which arrears of dividends go on accumulating if they are not paidNON-CUMULATIVE PREFERENCE SHARESA non cumulative Preference share is one in respect of which dividend do not accumulate if they are unpaid.

PARTICIPATING PREFERENCE SHARESA Participating preference share carries a right to share in surplus profit after a fixed dividend is paid both on equity and preference shares.NON PARTICIPATING PREFERENCE SHARESThese preference shares carry a right of only a fixed rate of dividend.REDEEMABLE PREFERENCE SHARES

The redeemable preference shareholders are paid back their capital after the expiry of the specified period or at the option of the company.

IRREDEEMABLE PREFERENCE SHARES

These preference shares are redeemed only at the winding up of the company.CONVERTIBLE PREFERENCE SHARES

Preference shares which can be converted into equity shares after a fixed period.

NON-CONVERTIBLE PREFERENCE SHARESThe preference shares which do not carry a right for conversion in to equity shares