Posted in: Legal/Finance in Andhra Pradesh | Posted: |
Advantages of equity shares
Equity shares do not create any obligation to pay a fixed rate of dividends. Equity shares can be issued creating no charge over the asset of the company. It is a permanent source of capital and the company has to repay it except under liquidation. Equity shareholders are the real owners of the company who have voting rights. With profits, equity shareholders are the real gainers with increased dividends and appreciation in the value of shares.