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Answer in one sentence. What are Equity shares? - Secretarial Practice

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Question

Answer in one sentence.

What are Equity Shares?

One Line Answer
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Solution 1

Equity shares are ordinary shares which are not preference shares. Equity share is a risky capital.

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Solution 2

Meaning:
Equity shares are also known as 'ordinary shares'. For legal reasons, a company can not exist without equity shares.

Definition:
Companies Act 1956 defines equity share as "those shares which are not preference shares."

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Sources of Owned Capital - Shares
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Chapter 2: Sources of Corporate Finance - Exercises [Page 36]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 2 Sources of Corporate Finance
Exercises | Q 1. H) 2. | Page 36

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