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Questions and Answers
What is the main characteristic of equity shares in terms of risk and return?
What is the main characteristic of equity shares in terms of risk and return?
- They carry a lower level of risk but offer potential for higher returns
- They carry a higher level of risk but offer potential for higher returns (correct)
- They carry a lower level of risk and offer fixed returns
- They carry a higher level of risk and offer fixed returns
What is the status of equity shareholders in the event of liquidation?
What is the status of equity shareholders in the event of liquidation?
- They have no claim on the company's assets during liquidation
- They are entitled to a fixed amount from the company's assets
- They have priority over all other creditors in claiming assets
- They have a claim on the remaining assets after all debts and obligations have been settled (correct)
What is the nature of voting rights for equity shareholders?
What is the nature of voting rights for equity shareholders?
- They have equal voting rights regardless of the number of shares they hold
- They have voting rights in proportion to the number of shares they hold (correct)
- They do not have any voting rights
- They have the sole authority in making major decisions
Do equity shares have a maturity date?
Do equity shares have a maturity date?
What do equity shareholders have a claim on in the company?
What do equity shareholders have a claim on in the company?
What determines the payment of dividends to equity shareholders?
What determines the payment of dividends to equity shareholders?
What happens to equity shareholders in the event of liquidation?
What happens to equity shareholders in the event of liquidation?
What is the characteristic of equity shares in terms of maturity date?
What is the characteristic of equity shares in terms of maturity date?
What type of risk and return do equity shares carry?
What type of risk and return do equity shares carry?
What do equity shareholders have a claim on in the event of liquidation?
What do equity shareholders have a claim on in the event of liquidation?
What determines the entitlement of equity shareholders to dividends?
What determines the entitlement of equity shareholders to dividends?
What is the nature of voting rights for equity shareholders?
What is the nature of voting rights for equity shareholders?
What is the main characteristic of equity shares in terms of risk and return?
What is the main characteristic of equity shares in terms of risk and return?
Do equity shares have a maturity date?
Do equity shares have a maturity date?
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