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Explain the following term/concept in detail: Equity shares - Secretarial Practice

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प्रश्न

Explain the following term/concept in detail:

Equity shares

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उत्तर

Equity shares are also known as ordinary shares. Companies Act defines equity shares as 'those shares which are not preference shares'.

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Sources of Owned Capital - Shares
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2025-2026 (March) Model set 2 by shaalaa.com

संबंधित प्रश्‍न

______ participate in the management of their company.


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

The accumulated dividend is paid to ______ preference shares.


The holder of ______ preference shares has the right to convert their shares into equity shares.


Debenture holders are ______ of the company.


______ is paid on borrowed capital.


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

The holders of these shares are entitled to participate in the surplus profit.


Equity shareholders enjoy a fixed rate of dividend.


State whether the following statement is true or false.

Equity shareholders are described as ‘shock absorber’ when company has financial crisis.


Equity shareholders elect their representatives called ______.


Answer in one sentence.

What are preference shares?


Correct the underlined word and rewrite the following sentence.

Preference shares get dividend at fluctuating rate.


Justify the following statement.

Equity shareholders are real owners and controllers of the company.


Justify the following statement.

Preference shares do not carry any voting rights.


Justify the following statement.

Equity share capital is risk capital.


State any 4 features of shares.


Answer the following question.

What are preference shares? State it’s features


Explain the following term/concept in detail:

Preference shares


Justify the following statement.

Preference Shareholders get priority in dividends over equity shareholders.


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