Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 11 - No. 36)

What is the difference between ordinary shares and preference shares?

Preference shares have voting rights, while ordinary shares do not.

Ordinary shares have a fixed dividend rate, while preference shares do not.

Preference shares receive dividends before ordinary shareholders.

Ordinary shares have a lower nominal value.

Preference shareholders receive dividends before ordinary shareholders.