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Answer in one sentence. What are Equity shares?

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प्रश्न

Answer in one sentence.

What are Equity Shares?

एक पंक्ति में उत्तर
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उत्तर १

Equity shares are ordinary shares which are not preference shares. Equity share is a risky capital.

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उत्तर २

Meaning:
Equity shares are also known as 'ordinary shares'. For legal reasons, a company can not exist without equity shares.

Definition:
Companies Act 1956 defines equity share as "those shares which are not preference shares."

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Sources of Owned Capital - Shares
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अध्याय 2: Sources of Corporate Finance - Exercises [पृष्ठ ३६]

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बालभारती Secretarial Practice [English] Standard 12 Maharashtra State Board
अध्याय 2 Sources of Corporate Finance
Exercises | Q 1. H) 2. | पृष्ठ ३६

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement.

______ are residual claimants against the income or assets of the company.


______ participate in the management of their company.


______ shares are issued free of cost to existing equity shareholders.


Select the correct answer from the options given below and rewrite the statement.

The holder of preference share has right to receive ______ rate of divided.


______ is paid on borrowed capital.


Write a word or a term or a phrase which can substitute the following statement.

Name the shareholders who participate in the management.


Write a word or a term or a phrase which can substitute the following statement.

The value of share which is written on the share certificate.


Write a word or a term or a phrase which can substitute the following statement.

The value of share which is determined by demand and supply forces in the share market.


Equity shareholders enjoy a fixed rate of dividend.


Complete the sentence.

Bonus shares are issued as gift to ______


Answer in one sentence.

What are cumulative preference shares?


Study the following case/situation and express your opinion.

Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely

  1. According to you which type of share Mr. Satish will choose to invest?
  2. What does he receive as return on investment?
  3. State any one right which he will enjoy as a shareholder.

Distinguish between the following.

Equity shares and Preference shares.


Justify the following statement.

Preference shares do not carry any voting rights.


Justify the following statement.

Different investors have different preferences.


Justify the following statement.

Equity share capital is risk capital.


Give one word or phrase for the following sentence:

What is Share?


Explain the following term/concept in detail:

Preference shares


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