Question

What are equity shares?

Answer 1

An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights

Answer 2

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$\: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \texttt{Equity shares are the ordinary shares } \\ \texttt{of the company representing the part ownership} \\ \texttt{of the shareholder in the company. These are } \\ \texttt{long term source of finance. The investors of } \\ \texttt{the equity share have the right to vote, share } \\ \texttt{the profit and claun the assets of the company.} \\ \texttt{Equity shareholders are the owner of the company. }$

$\: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \texttt{The dividend rate on the equity share } \\ \texttt{is not fixed. It depends upon the profitability } \\ \texttt{of the company. Investors can invest in equity } \\ \texttt{shares either through primary market offerings } \\ \texttt{or in the secondary market.}$