what is equity shares??...??..??

As per Section 85 (2) of Companies Act 1956, equity share is a share that is not a preference share. It does not posses any preferential right of payment of dividend or repayment of capital. The rate of dividend is not fixed on equity shares and varies from year to year. The amount of dividend on equity shares depends on the amount of profit available for distribution after paying dividend to the preference shareholders. The equity shareholders have the voting rights and also control the affairs of a company.

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Equity shares are those shares which do not have preferential right in payment of dividend and repayment of capital amout.These are the part of owners fund.

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