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प्रश्न
Justify the following statement.
Equity share capital is risk capital.
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उत्तर
Justification:
- Equity shareholders own the company and bear ultimate risk associated with the ownership.
- The equity shares do not enjoy preference for dividend. Also, they do not have priority for repayment of capital at the time of winding up of the company.
- Equity shareholders do not carry any fixed commitment of dividend. They are paid dividend at the rate recommended by Board of Directors.
- If there is no profit, no dividend will be payable. Similarly, if there is less profit, lesser dividend will be paid.
- The fortune of equity shareholders is tied up with the ups and downs of the company.
- They are described as ‘shock absorbers’ when company has financial crisis.
Hence, equity share capital is risk capital.
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.
______ shares are issued free of cost to existing equity shareholders.
Select the correct answer from the options given below and rewrite the statement.
The accumulated dividend is paid to ______ preference shares.
Debenture holders are ______ of the company.
Write a word or a term or a phrase which can substitute the following statement.
The ‘real masters’ of the company.
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.
Equity shareholders enjoy a fixed rate of dividend.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Answer in one sentence.
What is a share?
Answer in one sentence.
What are preference shares?
Answer in one sentence.
What are cumulative preference shares?
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Justify the following statement.
Preference shares do not carry any voting rights.
Justify the following statement.
Different investors have different preferences.
State the features of equity shares.
Answer the following question.
What are preference shares? State it’s features
The dividend is paid first to ______ shareholders.
Explain the following term/concept in detail:
Preference shares
