A company wants to issue such shares as do not have the right of preference for payment of Annual Dividend and refund of Capital at the time of Liquidation. Identify such shares and describe any three advantages.

Asked by Last Modified  

Follow 2
Answer

Please enter your answer

Technical Analysis Training, Stock Market Training, Equity Derivatives, Commodities Derivatives

By issuing Equity Shares, Company is not required to make the payment of annual dividend on preference as well as refund of capital at the time of liquidation. Advantage of issuing equity shares: i. Company is not having an obligation to pay fixed rate of dividend every year. ii. Company is not having...
read more
By issuing Equity Shares, Company is not required to make the payment of annual dividend on preference as well as refund of capital at the time of liquidation. Advantage of issuing equity shares: i. Company is not having an obligation to pay fixed rate of dividend every year. ii. Company is not having an obligation to repay the amount till liquidation. iii. Company is not required to pledge the assets for issuing equity shares. read less
Comments

Such shares are called equity shares and have following advantages: 1. They are permanent source of capital for the company. 2. Do not create charge on the assets of the company. 3. Company is under no obligation to pay fixed dividend each year.
Comments

Related Questions

What do mean by ATM? Write full form of ATM. Highlight the utilities of ATM.
Automatic Teller Machime, its an electronic machine which help customer to perform financial transactions electronically i.e. cash withdraw, balance check, ATM card PIN change, Mini statement etc.
Sharmistha
0 0
5
Banks are providing a wide range of services nowadays. Do you agree?
Yes, banks provide a vide range of services like accepting deposits, lending of advances, honouring financial instrumrnts like cheques, demand drafts, bills etc. Nowadays banks are also providing services...
Rishav
Why is cellular phone or cellphone called a mobile phone?
Mobile means movable or moving. Anything which is moving or can be moved is called mobile. So, when we talk about cell phone, we see that it is a communication device, it has no wire, it is not fixed,...
Mohammad
0 0
5

Which is best business learning class in pune?

Best business school in Pune that i would refer is Symbiosis Institute of Business Management.
Priya
0 0
5

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons


E-Commerce-- a short note!!
Electronic commerce is an emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically...


Global Enterprises at a Glance, MNC and other international forms of business
Global Enterprises: These companies have many markets other than their own country market (domestic market) to sell their product. Their products are available nearly all over the world. Why has globalization...

Qualities of a good entrepreneur - Class 12 / Std- XII th (Commerce - Economics)
Characteristics/Traits of a successful entrepreneur - CBSE/NCERT - Business Studies IGCSE Business Studies

Recommended Articles

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

With the current trend of the world going digital, electronic renaissance is a new movement that is welcomed by the new generation as it helps makes the lives of millions of people easier and convenient. Along with this rapidly changing movement and gaining popularity of Internet, e-Learning is a new tool that emerging...

Read full article >

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you