CUET Preparation Today
What is the difference between the procedure of issuing equity shares and preference shares of a company? |
Preference shares are issued in one go whereas equity shares cannot issued in one go Preference shares have to be registered with SEBI whereas equity shares are never registered with SEBI No difference Equity shares need RBI approval for issue but preference don't need any such approval |
No difference |
The correct answer is option 3- No difference. There is no difference between the procedure of issuing equity shares and preference shares of a company. The procedure for accounting for the issue of both equity and preference shares is the same. To differentiate between the two the words ‘Equity’ and ‘Preference’ is prefixed to each and every instalment. |
