A company wants to issue such shares which do not have the right of preference for payment of dividend and refund of capital at the time of liquidation. Identify such shares. Write its Merits.
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equity shares
merits :->
- they are not entitled for dividend , but it can completely relied upon profit of companies
- we don't need to mortgage the assets while issuing equity shares.
- it is long term finance does not carry right for repayment. only repaid at the time of winding up after repayment to preference shareholders
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