Question

What do you mean by equity shares?

Answer 1

Equity shares are regarded as sources of long term financing for the company. These are issued by the company to the general public for raising funds. These shares are non-redeemable in nature.

The holders of equity shares are entitled to receive dividends if the company earns profits, and also have a right to vote and claim assets of the company.

Also read:

• Money Market Vs Capital Market
• SEBI Objectives and Functions
• What Are Equity Shares
• Preference Shares

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