Advertisements
Advertisements
प्रश्न
What is meant by Equity Shares?
उत्तर
- Equity shares do not carry any special or preferential rights in the payment of annual dividends or repayment of capital. The rate of dividend on such shares is not fixed.
- Dividends on equity shares are paid out of the residual profits left after paying interest on debentures and dividends on preference shares.
- Similarly, equity shareholders are paid at the company's winding-up after all debts and preference shareholders have been paid in full. They are entitled to receive what is left after all prior claims have been satisfied.
- Therefore, equity shareholders are the real risk-bearers. But they share in the increasing profits of the company.
APPEARS IN
संबंधित प्रश्न
The capital of the company is divided into equal parts called ______.
Write short note on Equity shares.
Issue of shares is the most important source of raising long-term finance.
Dividend on equity shares is paid out of the profits ______ paying interest on debentures and ______ dividend on preference shares.
The ______ holders are the main risk bearers. They provide risk capital because when the company fails and is closed, equity shareholders may lose their entire investment.
______ is attractive to bold and adventurous investors whereas ______ appeals to conservative and orthodox investors.
Which of the following are the features of equity shares?
Discuss the importance of equity shares as sources of long-term finance.
The directors of a company have decided to modernise the plant and machinery at an estimated cost of rupees one crore. State the merits and demerits of issuing equity shares for the purpose.
Equity shareholders are the real owners of business.
