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Question
Answer in one sentence.
What are Equity Shares?
Solution 1
Equity shares are ordinary shares which are not preference shares. Equity share is a risky capital.
Solution 2
Meaning:
Equity shares are also known as 'ordinary shares'. For legal reasons, a company can not exist without equity shares.
Definition:
Companies Act 1956 defines equity share as "those shares which are not preference shares."
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