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Equity Shares
Equity Shares Preference Shares Debt Instruments

Shares or stock options in a company entitles the buyer the ownership rights in a company. As a unit of ownership the stock/share holder gets a voting right in the company. The total of these shares is what contributes to the capital of the company.

Equity shares is the equally divided capital of a company. Total capital contribution for a company comprises of investments through equity share holdings by small and big investors. The investors who have a stake in a company are referred to as shareholders. The equity shares are therefore documents issued by a company and floated in the open market for purchase by shareholders which entitles them to be one of the owners of the company.

The profits of equity shareholders depend on the profit making capability of the company that they have invested in. In a situation where the company has made huge profits the benefits are passed over to the equity share holders by way of dividends. The equity shareholders also enjoy voting rights in the company.
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