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What are Equity Shares? July 27 2017Stock Market Trading

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What are Equity Shares?

An equity share is a basic term that associates with a company. Let us begin the article by knowing the meaning of equity shares.

What are Equity Shares?

Equity shares are also termed as ordinary shares of the company. The holders of equity shares have the right to vote in the meetings of the company. They are the real owners of the company. The dividend payment is first made to preferential shareholders and later to equity shareholders. However, the right to control and manage the company lies in the hands of equity shareholders.

Let us have a look at some of the features of equity shares.

Features of Equity Shares

·         They bear the highest risk as they are the owners of the company.

·         They can be transferred from one person to another with or without any consideration.

·         They are permanent in nature.

·         The rate of dividend is not fixed for equity shareholders.

·         They manage the affairs of the company.

Let us now have a look at some of the advantages of equity shares.

Advantages of Equity Shares from Shareholder’s Point of View

·         Equity shareholders are the real owners of the company and have the voting rights.

·         During profits, equity shareholders gain a lot in the form of higher dividend and increase in the value of shares.

Advantages of Equity Shares from Company’s Point of View

·         They can be issued without mortgaging or creating any charge on the assets of the company.

·         There is no obligation to pay a dividend on equity shares. Dividend needs to be paid only if there are profits.

·         It is the permanent source of income for the company that needs to be repaid only at the time of liquidation.

Conclusion

Trading and investing in equity shares is hugely popular. Indira Securities provides all financial services related to equity shares. Our clients can avail our services by applying for an IPO or investing/trading in equity markets. Open a demat account with us and we will help you in identifying growth stocks for your portfolio. If you have any query, you can reach us via call or email.

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

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5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
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