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Equity Shares("What is Equity Share? State the features of equity shares.OR |
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Answer» Anequityshare, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of suchsharesare members of the company and have voting rights.Advantages of Equity Shares. (a) Equity shares are veryliquidand can be easily sold in the capital market. (b) In case of high profit, they get dividend at higher rate. (c) Equity shareholders have the right to control the management of the company. |
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