Question

Which of the following is a merit of equity shares?

• A. Equity capital provides credit worthiness to the company.
• B. Equity shares are suitable for investors who are willing to assume risk for higher returns.
• C. Equity capital serves as permanent capital.
• D. All of the above

Answer 1

The correct option is D All of the above

Equity Share capital is also known as ownership capital or owner's funds. The merits of equity shares are, They provide credit worthiness to the company. Equity shares are suitable for investors who are willing to assume risks for higher returns, Equity capital serves as permanent capital.