Beruflich Dokumente
Kultur Dokumente
Equity Debt
Security Security
Equity Debentures
Shares
Bonds
Preference
Shares
Equity Securities:
1. Equity Shares:
Equity shares are also known as ordinary shares. Equity
shares are those shares which have rights to vote and enjoy
the benefits of dividend in last after. Equity shareholders
are considered as real owners of the company. Equity
shares are the main source of finance of a firm.
Equity shares refers to those shares which are paid
dividends only when profits are left only after paying fixed
rate of dividend. The dividend is not fixed in equity shares,
it is depends on the company profit. If the profit is higher
dividend also higher or vice-versa. Equity shareholders
have voting right and right to control company affairs.
MERITS:
A permanent source of finance to the Company.
No fixed rate of dividend
Easy liquidity and marketability
DEMERITS:
No guarantee on returns to Shareholders
Loss on Managerial Control
2. Preference Shares: