Shares are of Two Type-a. Equity Share B. Preference Share

Equity shares are those shares who do not enjoy any preference as regards payment of dividend and repayment of capital. The rate of dividend on
equity shares is not fixed. It fluctuates, as it depends on the profits made by a company. They have normal voting rights.

Preference shares are those shares which enjoy preference as regards payment of dividend and repayment of capital. Preference shareholders do not have normal voting rights. Many investors view preferred stock as more closely related to fixed income because the divided yield is typically higher and more stable than on equity shares.