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प्रश्न
Answer the question.
Explain the advantages of equity shares, as a source of finance.
उत्तर
Advantages of equity shares are:
- Equity shares impose no burden on the company resources because the dividend is payable only at the discretion of the management.
- The liability of equity shareholders is limited to the face value of shares subscribed by them.
- A company with substantial equity capital commands prestige in the investment market.
- Equity shareholders have the pre-emptive right to subscribe to new shares issued by the company.
- The face value of an equity share is generally low.
- The value of an investment in equity shares may increase manifold during the boom and prosperity of the company-holders of these shares earn capital gains.
- Equity shares do not create any charge on the assets of the company.
- Shareholders are not required to pay income tax on dividends received from the company.
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संबंधित प्रश्न
The bonds on which rate of interest remains constant throughout the life of the bond.
Write notes on Features of equity shares.
Write a word or terrn or phrase which can substitute each of
the following statements:
The value of share which is determined by demand and supply forces in the share market.
Select the proper option from the option given below and rewrite the sentences:
If a share of 100 is issued at 110. It is said to be issued at ___________.
Write a word or term or phrase which can substitute each of the following statements:
The use of borrowed capital for financing a business firm.
Equity shares and Preference shares.
Distinguish between equity shares and preference shares.
Write any four features of equity shares.
The director of a company must be ______.
Equity share holders are ______.
