What do you mean by Equity share?

Question

Accepted Answer

>

> [!TLDR]
> Equity shares are ownership capital — voting rights, variable dividend, residual claim and maximum risk.
>
> An **equity share** (ordinary share) is a unit of the **ownership capital** of a company. Its features:
> - **Ownership and voting rights** — equity shareholders are the **real owners** of the company and have the right to **vote** and participate in management decisions.
> - **Variable/residual dividend** — they receive dividend **only after preference shareholders**, and the rate is **not fixed** — it depends on profits.
> - **Residual claim on assets** — on winding up, they are paid **last**, only after all creditors and preference shareholders.
> - **Maximum risk and reward** — they bear the **highest risk**, but gain the most when the company prospers.
> …

What	Why it matters
Date of allotment	The exact day ownership changed hands
Number and class of shares	Equity? Preference? How many?
Names, addresses, and PAN of allottees	Who are the new owners?
Amount payable and amount paid	Was it fully paid up or partly paid?
Consideration	Cash, or something else (like a patent or land)?
Basis of allotment	Was it a rights issue, bonus issue, or fresh issue?

Q.What do you mean by Equity share?

Concept understanding — Company Allotment Return

Company Allotment Return — The First Meeting

The Intuition: Why does the government care?

The Precise Statement

What goes into it?

A critical detail: Allotment vs. Application

Q.What do you mean by Equity share?

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