Question

what are the advantages and disadvantages of trading on equity?

Answer 1

ADVANTAGES

Payment of Dividend on higher rates

With dividends, an individual Minimize his Tax Burden

It results in an increase in Goodwill of the Company

There is a Control on financial Sources hence the business also does not suffer

DISADVANTAGES

The income is uncertain

There might be a low rate of return

Loan on the high rate of interest.

There is fear of Over Capitalization.

Under intervention of Loan providers.

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Answer 2

Answer:

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