Question

9. After reading an email about the upcoming public issue of preference shares of National
solar power company, 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
Cooperation of India. Give 3 reasons due to which Mr. Ajay Menon wants Rajeev to invest
in equity shares only​

The one who will answer first and correct will be marked as BRAINLIEST and I will follow him/her

Answer 1

The following might be the 3 reasons due to which Mr. Ajay Menon wants Rajeev to invest  in equity shares only​:

Explanation:

1. Tax benefits:  

• This is one of the chief advantages of Equity Shares. If there is a greater yield on equity shares from an increment in capital gains then the taxes are collected at a lower rate than the incomes.  

2. Profit potential:  

• The profit potential is greater in Equity share as contrasted to any other investment. In some cases, there might be a low current dividend but the potential of the capital gain would be high.  

3. Value of the investment:  

• The equity shareholders of any business will get profit in two different ways which include a yearly dividend and a rise in the value of the investment.  

• Thus, equity shares are regarded as highly advantageous for shareholders.