Business Studies, asked by shera6hsicagmo, 1 year ago

Why is equity share capital called risk capital?

Answers

Answered by monu7bishnoi
7
Equity share capitals called risk capital because Equity share holders are last one to get paid for dividend or bonus  at the same time they are the last one who get fund in case of company shut off or closing of business if there any liability or pending outside. means there is always a  risk that company may get closed or DE- list hence it called risk capital .
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