Question

what is equity share?

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Answer 1

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Answer 2

What are Equity shares?
Equity Share Meaning
An equity share, normally known as ordinary share is a part ownership where each member is a fractional owner and initiates the maximum entrepreneurial liability related with a trading concern. These types of shareholders in any organization possess the right to vote. _____ Features of Equity Shares Capital
Equity share capital remains with the company. It is given back only when the company is closed
Equity Shareholders possess voting rights and select the company’s management
The dividend rate on the equity capital relies upon the obtainability of the surfeit capital. However, there is no fixed rate of dividend on the equity capital
Types of Equity Share
Authorized Share Capital- This amount is the highest amount an organization can issue. This amount can be changed time as per the companies recommendation and with the help of few formalities.
Issued Share Capital- This is the approved capital which an organization gives to the investors.
Subscribed Share Capital- This is a portion of the issued capital which an investor accepts and agrees upon.
Paid Up Capital- This is a section of the subscribed capital, that the investors give. Paid-up capital is the money that an organization really invests in the company’s operation.
Right Share- These are those type of share that an organization issue to their existing stockholders. This type of share is issued by the company to preserve the proprietary rights of old investors.
Bonus Share- When a business split the stock to its stockholders in the dividend form, we call it a bonus share.
Sweat Equity Share- This type of share is allocated only to the outstanding workers or executives of an organization for their excellent work on providing intellectual property rights to an organization.