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प्रश्न
Discuss the importance of equity shares as sources of long-term finance.
उत्तर
- The holders of equity shares are the main risk bearers. They provide risk capital because when the company fails and is closed, equity shareholders may lose their entire investment.
- Equity shareholders are likely to enjoy a higher return and a considerable increase in the value of their shares.
- Equity shareholders have a residual claim in the company. The income left after payment of interest to creditors and dividends to preference shareholders belongs to equity shareholders.
- Equity share capital improves the credit worthiness of the company and the confidence of the creditors. It is the basis on which loans can be raised.
- Equity shareholders have the right to elect directors. They can collectively ensure that the company is managed in their best interests.
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संबंधित प्रश्न
Equity shareholders are called ______.
Write short note on Equity shares.
Issue of shares is the most important source of raising long-term finance.
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.
______ shareholders are the real risk bearers who enjoy voting rights.
Which of the following are the features of equity shares?
Describe the characteristics of different kinds of shares which a public company can issue.
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.
Explain the advantages of equity shares as a source of long-term finance.
Explain the disadvantages of equity shares as a source of long-term finance.
