Advertisements
Advertisements
Question
Justify the following statement.
Equity shareholder enjoys certain rights.
Advertisements
Solution
Equity Shareholders enjoy certain rights as given below:
- Right to vote: It is the basic right of equity shareholders through which they elect directors, alter Memorandum and Articles of Association, etc.
- Right to share in profit: It is an important right of equity shareholders. They have the right to share in profit when distributed as dividends. If the company is successful and makes a handsome profit, they have the advantage of getting a large dividend.
- Right to inspect books: Equity shareholders have the right to inspect the statutory books of their company.
- Right to transfer shares: The equity shareholders enjoy the right to transfer shares as per the procedure laid down in the Articles of Association.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
The accumulated dividend is paid to ______ preference shares.
______ is paid on borrowed capital.
Write a word or a term or a phrase which can substitute the following statement.
Name the shareholders who participate in the management.
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.
Answer in one sentence.
What are Equity Shares?
Answer in one sentence.
What are cumulative preference shares?
Study the following case/situation and express your opinion.
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely
- According to you which type of share Mr. Satish will choose to invest?
- What does he receive as return on investment?
- State any one right which he will enjoy as a shareholder.
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.
Equity share capital is risk capital.
State any 4 features of shares.
State the features of equity shares.
Answer the following question.
Define preference shares. What are the different types of preference shares?
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
