Question

3
Q14. After reading an email about the upcoming public issue of preference shares of
National Solar Power Co., Rajeev made up his mind to invest money in this issue.
He discussed his plan with his uncle Mr. Ajay Menon who is a stock broker. He
advised Rajeev to invest in upcoming public issue of equity shares of National
Building Corporation of India. Give any 3 reasons due to which Mr. Ajay Menon
wants Rajeev to invest in equity shares.​

Answer 1

Answer:

The money market is the trade in short-term debt. ... The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors.

Answer 2

i) Equity shareholders have democratic control over the management

ii) these shareholders have voting rights of company.

iii) Their liability is limited.