Question

Answer in one Sentence only :
Write the meaning of equity share capital.

Answer 1

A company can raise capital via debt capital and share capital. Debt capital is procured from lenders in the form of loans or debentures, whereas share capital is procured by issuing shares (i.e. equity shares or preference shares). Equity shareholders have ownership rights in the management of a company and the amount of equity share capital is repaid only on winding up the company.