Question

What is equity share ? State the features of equity shares.

Answer 1

Hey, mate here is your answer》》

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. Equity capital is paid after meeting all other claims including that of preference shareholders.

The features of equity shares are:-

(a) Equity shares are very liquid and can be easily sold in the capital market.

(b) In case of high profit, they get dividend at higher rate.

(c) Equity shareholders have the right to control the management of the company.

Hope this answer will help you..《《

Answer 2

equity shares were earlier known as ordinary shares .the holders of this shares are the real owner of the company .they have a voting right in the meeting of holders of the company .they have a control over the working of the company .
.equity share capital remains permanently with the company it is written only when the company is wound up

.equity shareholders have voting rights and elect the management of the company

.the rate of dividend on equity capital depend upon the ability of surplus funds there is no fixed rate of the dividend on equity capital