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प्रश्न
Explain any three disadvantages of issuing equity shares, from the Company's point of view.
उत्तर
1. If only equity shares are issued, the company cannot take advantage of trading on equity.
2. As equity capital cannot be redeemed, there is a danger of overcapitalization.
3. Equity shareholders can put obstacles for management by manipulation and organizing themselves.
APPEARS IN
संबंधित प्रश्न
Preference shares carry dividend at .......................... rate.
- Fixed
- Fluctuating
- Lower
The type of shareholders who can participate in the management of the company.
Equity Shares and Preference Shares.
State, with reasons, whether the following statement is True or False :
Right shares are issued to the general public.
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.
What is equity share? Explain the feature of equity shares.
Match the correct pairs
| Group A | Group B |
| (a) Fixed Capital | 1) Share Certificate holder |
| (b) Equity share Capital | (2) Share warrant holder |
| (c) Share Certificate | (3) Investment in current assets |
| (D) Debentures | (4) Investment in fixed assets |
|
(e) Dividend warrant |
(5)Redeemable capital |
| (6) Permanent Capital | |
| (7) Bearer Document | |
| (8) Registered Document | |
| (9) Interest | |
| (10) Dividend at a fixed rate |
Fully convertible debentures are converted into __________ shares on maturity.
What is meant by participating preference shares?
Write any four features of equity shares.
