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Are You Confused about Equity Shareholds? Carry with Your Best Shares Now

Carry with Your
Best Shares

Equity shares are the shares that the companies issue to the public for long term financing. Legally the equity shares are not redeemable in nature and that is why they are referred to as long term source of finance for a company. The investors of the equity shares have the right to vote, share the profits and claim the assets of the company. The value of equity shares is expressed in the various term like par value or face value, book value, issue price, market price, intrinsic value and so on.

Advantages of Equity Shares

CAPITAL GAIN

The other source of return on investment apart from dividend is the capital gains. Gains which arise due to rise in market price of the share.

LIMITED LIABILITY

Liability of shareholder or investor is limited to the extent of the investment made. If the company goes into losses, the share of loss over and above the capital investment would not be borne by the investor.

STOCK SPLIT

Stock split means splitting a share into parts. How should an investor be benefited by this? By splitting of share, the per-share price reduces in the market which eventually increases the readability of share. At the end, stock split results in higher volumes with a number of investors leading to high liquidity of the share.

 

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