Advertisements
Advertisements
प्रश्न
Describe the characteristics of different kinds of shares which a public company can issue.
Advertisements
उत्तर
Thus, the distinctive characteristics of equity shares are as follows:
- The holders of equity shares are the main risk bearers. They provide risk capital because when the company fails and is closed, equity shareholders may lose their entire investment.
- Equity shareholders are likely to enjoy a higher return and a considerable increase in the value of their shares.
- Equity shareholders have a residual claim in the company. The income left after payment of interest to creditors and dividends to preference shareholders belongs to equity shareholders.
- Equity share capital improves the creditworthiness of the company and the confidence of the creditors. It is the basis on which loans can be raised.
- Equity shareholders have the right to elect directors. They can collectively ensure that the company is managed in their best interests.
APPEARS IN
संबंधित प्रश्न
Equity shareholders are called ______.
Write short note on Equity shares.
______ have the last claim but full voting rights.
Issue of ______ is the most important source of raising long-term finance.
______ is attractive to bold and adventurous investors whereas ______ appeals to conservative and orthodox investors.
Which of the following are the features of equity shares?
Discuss the importance of equity shares as sources of long-term finance.
What is meant by Equity Shares?
Explain the advantages of equity shares as a source of long-term finance.
Explain the disadvantages of equity shares as a source of long-term finance.
