Question

what is equity shares?​

Answer 1

Answer:

All shares which are not preference shares are equity shares”. The capital collected by a company by issuing equity shares is called Equity Shares Capital. Equity shares do not have claim prior to preference shares for payment of dividend and repayment of capital.

Answer 2

Answer:

Equity shares refers to those shares which do not carry any professional right in the payment of annual dividend and repayment of capital in the event of liquidation.

• Equity share holder have full right to participate in management

• Equity share holder are the actual owner of the company

• Dividend is paid at last of all to Equity shareholders

• It is compulsory to issue equity shares for the formation of the company.

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