Question

These shares represents the ownership of a Company and thus
the capital raised by issue of such shares is known as
ownership capital or owner’s fund. The shareholders who own
these securities do not get a fixed percentage of dividend. Identify and explain the concept. Also explain two merits and
two demerits of this security

Answer 1

Answer:

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Answer 2

Answer:

Equity shares are the vital source for raising long-term capital. Equity shares represent the ownership of a company and capital raised by the issue of such shares is known as ownership capital or owner's funds.

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