Question

Issue
of
equity
shares
also
have
got
a
few
limitations.
Briefly
explain
any
three
of
them​

Answer 1

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.