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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.
The accumulated dividend is paid to ______ preference shares.
The holder of ______ preference shares has the right to convert their shares into equity shares.
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 shareholders are described as ‘shock absorber’ when company has financial crisis.
Complete the sentence.
Bonus shares are issued as gift to ______
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.
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Distinguish between the following.
Equity shares and Preference shares.
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.
Different investors have different preferences.
State the features of equity shares.
Answer the following question.
Define preference shares. What are the different types of preference shares?
The dividend is paid first to ______ shareholders.
Give one word or phrase for the following sentence:
What is Share?
Explain the following term/concept in detail:
Equity shares
