Friday, 8 January 2016

Equity Tips :

What is Equity :

In accounting and finance, equity is the difference between the value of the assets/interest and the cost of the liabilities of something owned. For example, if someone owns a car worth $15,000 but owes $5,000 on that car, the car represents $10,000 equity.

Features of Equity Shares:
Equity shares have the following features:

(i) Equity share capital remains permanently with the company. It is returned only when the company is wound up.

(ii) Equity shareholders have voting rights and elect the management of the company.

(iii) The rate of dividend on equity capital depends upon the availability of surplus funds. There is no fixed rate of dividend on equity capital.


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1 comment:

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