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Want to Increase Your Equity Share ? Make Your Equity Share as Income

Increase Your Equity Share

They are permanent in nature.

Equity shareholders are the actual owners of the company and they bear the highest risk.

Equity shares are transferable, ownership of equity shares can be transferred with or without consideration to other person.

Dividend payable to equity shareholders is an appropriation of profit.

Equity shareholders do not get fixed rate of dividend.

Make Your Equity Share as Income

Equity shares are the shares joint stock companies issue to the public as the main source of long-term financing. The reason it’s referred to as long-term financing is because equity shares are legally not redeemable in nature. Equity share value is stated in terms of the face value of each share, which is also called issue price, par value, book value, or market value. Usually, the asset’s value minus liabilities equals the asset’s equity value. To shorten this to an equation for accounting purposes, it’s Assets-Liabilities=Equity.

Shareholder’s Point of View

  • Equity shares are liquid in nature and can be sold easily in the capital market.
  • The dividend rate is higher for the equity shareholders when the company earns high profits.
  • The equity shareholders have the right to control the company’s management.
  • The equity shareholders not only get the benefit of dividend but they also get the benefit of price appreciation in the value of their investment.

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