What Are The Types Of Equity Shares?

What Are The Types Of Equity Shares?

1 Answer

  1. Following are types of equity shares:
    1. Rights issue/ Rights shares: The issue of new securities to existing shareholders at a ratio to those already held.
    2. Bonus Shares: Issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years.
    3. Preference Shares: Owners of these shares are entitled to a fixed dividend.
    4. Cumulative Preference Shares: It is a type of share in which dividend is accumulated it remains unpaid.

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