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प्रश्न
Write short note on Equity shares.
उत्तर
Equity shares are firm ownership expressed differently. They comprise the company's owner's fund or capital. Equity shares are those that do not have any special or preferential privileges in the payment of yearly dividends or capital repayment.
Some key points highlighting the characteristics of equity shares are as follows:
- The company grants voter rights to holders. The holders help the business make decisions. As their return on investment, they receive dividends out of profits.
- The dividend rate is not set-forth. High dividend in case of big gains and none in case of loss.
- They still retain residual interests on corporate liquidation.
- They help to share firm residual earnings.
All things considered, Equity shares constitute a kind of long-term corporate ownership-based investment. Given their great risk profile as well, there is a well-known adage regarding equity owners: "They sink and swim with the company".
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संबंधित प्रश्न
Equity shareholders are called ______.
The capital of the company is divided into equal parts called ______.
______ have the last claim but full voting rights.
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.
______ shareholders are the real risk bearers who enjoy voting rights.
Which of the following are the features of equity shares?
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.
What is meant by Equity Shares?
