IGNOU MS 44 2026 2027 - . What do you understand by equity shares? Explain the features of the

Question

. What do you understand by equity shares? Explain the features of these shares.

09 Jul 2026

Answer :

Word Count : 496

Equity shares are the ordinary shares of a company that represent the ownership of shareholders in the business. The holders of equity shares are known as equity shareholders or ordinary shareholders. They provide permanent capital to the company and are regarded as the real owners because they bear the ultimate risk and enjoy the residual rewards of the enterprise. Equity shareholders receive dividends only after all obligations towards preference shareholders, debenture holders, creditors, and other stakeholders have been met. The dividend on equity shares is not fixed and depends upon the profitability and dividend policy of the company. Equity shares have several important features.

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