Equity Shares….Equity Shares….

By:- Shikhar SinghBy:- Shikhar Singh

MBA IInd SemMBA IInd Sem

What is Share?What is Share?

•Share means share in the share capital of companies.

What is Equity Share?What is Equity Share?•Equity shares are residual

owners.•Equity shares are the most potent

source of long-term financing.•The Equity shareholders as

owners of business (company). •They have voting rights which

offer controlling power of them.

Features of Equity Shares:-Features of Equity Shares:-

•Maturity•Claims on Income•Claims on Assets•Control

Advantages of Equity SharesAdvantages of Equity Shares

•Increases the borrowing power.

•No Legal obligation .•No liability for redemption.

Disadvantages of Equity SharesDisadvantages of Equity Shares

•More risky.•It will affect the ownership.

•Cost of equity share capital.

Thank You…..