Basics of Equity Shares

Basics of equity share in 2021 : Introduction

One, who holds an equity or equity share of a company, is actually a shareholder of that company. Small or large– whatever may be his equity holding, he shares responsibility of both good and bad of the company. The percentage of profit, he is entitled to, depends on the degree of amount of his shareholding or equity holding in the company. The company can share its profit with the equity holder in two ways-either paying dividend or keeping it as “reserve” on its balance sheet. Now the point is, how does an ordinary share holder stand to gain, if his share of profit is …

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