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What Are Equity Shares?

8 Answers

Jeromeproofer Penn Profile
Equity shares are another name for a share or stock that represents an ownership in a company in one its most basic forms. They become available if a company needs capital or money to operate as a business, it can generate the required funds by selling ownership in the company.

This means that the company issues equity shares for a fair price and these shares represent ownership in the company for anyone who purchases the shares. These shares are an ownership in the company and give the owner the right to have a share in the profits of the firm. When there is no difference in the class of the share, then all the shares of the company considered as equity shares.

Equity is defined as 'the residual interest in the assets of the company after deducting all its liabilities such as long term borrowing for rising loan capital in the form of debenture either single debenture, debenture issued of series or debenture stock finance.'

An equity share is a document issued by a company which entitles the shareholder to be one of the owners of the company. One of these shares can be purchased from a stock market and by owning one you can earn a portion of its profits and even sell it to receive a capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price so be extremely careful when purchasing equity shares as there is a risk in doing so.

The British English term for the word refers solely to the stock market and is so commonly used that is almost replaces the word stock itself.
d ds Profile
d ds answered
A share or stock is also known as an equity share as well. The equity share basically represents ownership in the company. When a company needs capital or money to operate, it generates the required funds by selling ownership in the company. This means that the company issues equity shares for a price and these shares represent ownership in the company for the one who purchases the shares. These shares are an ownership in the company and give the owner the right to have a share in the profits of the firm.
Anonymous Profile
Anonymous answered
Equity shares are the part of share capital.
Particularly, equity shares r dose share which r traded in da stock markets. Dese shares carry voting rights.company gave you dividend as you hav invested your money in their company.but it is not necessary that each year you ill get dividend. It only disrtibuted only wen company is in profits.these shares r fully transferable.
Anonymous Profile
Anonymous answered
If there is no difference between the class of share then all share of the company are considered as equity share. Equity is the residual interest in the assets of the company after deducting all its liabilities such as long term borrowing for rising loan capital in the form of debenture either single debenture, debenture issued of series or debenture stock...
nazia ali Profile
nazia ali answered

Equity share means equal value share which are issued to public through public issue by registered company. Public can purchase equity share.      


Akhilesh Bhatnagar Profile
So we can consider, that Only an employee can purchase the equity shares ..
M I right ??  Any External person can not purchase the company's equity shares.
Anonymous Profile
Anonymous answered
In case of liquidation of a company, the preference share holder gets back his / her money first. Then the normal stockholders get the money. The money recieved may be, actually, less than the face value of the capital invested in shares for a poor choice!

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