Question

the merits of equity shares as a source of long term finance.​

Answer 1

Answer:

Equity shares are long-term financing sources for any company. ... Investors in such shares hold the right to vote, share profits and claim assets of a company. The value in case of equity shares can be expressed in various terms like par value, face value, book value and so on

Answer 2

One of the primary benefits of investing in equity shares is liquidity.

Liquidity:

• The quantity of shares listed on the stock exchange is referred to as liquidity.
• When you buy a company's stock, you have the option of easily selling it on the exchange.

Merits of equity shares:

• Equity shares are indeed a long-term source of funding for any company.
• These really are non-redeemable shares that are issued to the general public.
• Investors in these kinds of shares have the right to vote, share profits, and claim a company's assets.