Question

What is equity share

Answer 1

Equity shares were earlier known as ordinary shares. The holders of these shares are the real owners of the company. They have a voting right in the meetings of holders of the company. They have a control over the working of the company. Equity shareholders are paid dividend after paying it to the preference shareholders.

The rate of dividend on these shares depends upon the profits of the company. They may be paid a higher rate of dividend or they may not get anything. These shareholders take more risk as compared to preference shareholders.

Equity capital is paid after meeting all other claims including that of preference shareholders. They take risk both regarding dividend and return of capital. Equity share capital cannot be redeemed during the life time of the company.

Answer 2

Heya Mate!!

Here is your answer!!

Answer!!

Equity shares are the shares joint stock companies issue to the public as the main source of long-term financing. The reason it's referred to as long-term financing is because equity shares are legally not redeemable in nature. Equity share value is stated in terms of the face value of each share, which is also called issue price, par value, book value, or market value. Usually, the asset's value minus liabilities equals the asset's equity value.

____________@Rajasthani