Question

Explain the three limitations of equity share capital.​

Answer 1

Answer:

Limitations of Equity Shares

Investors who prefer steady income may not prefer equity shares. The cost of equity shares is higher than the cost of raising funds through other sources. The issue of additional equity shares dilutes the voting power and earnings of existing equity shareholders.

Answer 2

Explanation:

Limitations of Equity Shares

Investors who prefer steady income may not prefer equity shares. The cost of equity shares is higher than the cost of raising funds through other sources. The issue of additional equity shares dilutes the voting power and earnings of existing equity shareholders.