Equity shares issued by a company to its employees or directors at a discount or for consideration other than cash providing know-how or making available rights in the nature of intellectual property rights or value additions are known as __________.

Employees'/ Directors' shares

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Promoters' quota shares

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Sweat equity shares

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Rights issue of shares

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Solution

The correct option is C Sweat equity shares
Sweat equity shares' are such equity shares, which are issued by a Company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions.

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