Similarities between Equity Finance and Preference

Similarities among Equity Finance and Preference are as follows:

a) Both may be permanent whether preference share capital is irredeemable as convertible.

b) Both are unsecured or naked finances.

c) At the stock exchange both are traded

d) By public limited companies only both are raised

e) Both carry residue claims after such debt.

f) For the company to pay both dividends are not a legal obligations.