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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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संबंधित प्रश्‍न

______ 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.


Debenture holders are ______ of the company.


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.


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.


State whether the following statement is true or false.

Equity share capital is known as venture capital.


State whether the following statement is true or false.

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


Complete the sentence.

The convertible preference share holders have a right to convert their shares into ______


Answer in one sentence.

What are Equity Shares?


Answer in one sentence.

What are preference shares?


Correct the underlined word and rewrite the following sentence.

Equity shares get dividend at fixed rate.


Justify the following statement.

Preference shares do not carry any voting rights.


Justify the following statement.

Different investors have different preferences.


State any 4 features of shares.


Justify the following statement.

Equity shareholder enjoys certain rights.


Explain the following term/concept in detail:

Preference shares


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