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Briefly explain the following source of finance: Equity Shares - Business Studies

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Question

Briefly explain the following source of finance:

Equity Shares

Answer in Brief

Solution

Equity shares reflect ownership of a corporation. When a firm issues equity shares, it sells part of its ownership to investors for funds. Equity stockholders share the company's profits through dividends and capital appreciation. Unlike debt instruments, equity shares provide long-term financing without the need for monthly interest payments.

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Equity and Preference Shares
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