Equity shares are
those shares which are ordinary in the course of company's business. They are
also called as ordinary shares. These share holders do not enjoy preference
regarding payment of dividend and repayment of capital. Equity shareholders are
paid dividend out of the profits made by a company.
Equity shares are
the shares which carry voting rights; they do not carry a fixed rate of dividend, their dividend depends upon the volume of profits available for
distribution, they get high
dividend when the company makes good profits but they do not get anything when
the profits are inadequate
They do not get
their dividend or refund of share capital before preference share holders are
paid
