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18 Dec 2019
Equity shares

We also know equity shares as ordinary shares. These shares have voting rights. Equity share is a main source of finance for any company giving investors the right to vote, share market profits and claim on assets.
We know a share that is not a preference share as equity share. It doesn’t offer a fixed rate of return. They don’t get a fixed rate of dividends. It entitles the whole of the profit of a company to these equity shareholders, only after paying a fixed dividend to preference shareholders.
Advantages of equity shares are it is a permanent source of capital gain and the company has to repay it except under liquidation.
With profits, equity shareholders are the real gainers with increased dividends and appreciation...