Question

What are equity shares only

Answer 1

Equity shares are shares which are normal in due course of company's business.  

They are known as ordinary shares where those share holders don't enjoy option regarding payment of dividend and repayment of capital.

Equity shareholders are paid dividend out of profits made by company.  

Higher profits higher will be dividend and lower profits lower will be dividend.

   Features of Equity Shares:

1) Owned capital: Equity capital is own capital as its money of shareholders who are real owners of  

        that organization.

2) Fixed value or nominal value: Every share has fixed value. For example if price of share is Rs. 10/- which  

        points to fixed value or nominal value.

3) Distinctive number: Every share is provided with a perfect number just as roll number for identification.

Answer 2

$\huge{ \underline{ \overline{ \mid{ \mathfrak{ \red{ \: \: ANSWER \: \: } \mid}}}}}$

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

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