Equity share

Equity share
Source: Tavaga

An equity share is a right to part-ownership of a publicly-listed company. It is also known as common stock.

How is the value of an equity share determined?

The monetary value of the ownership or value of a share is determined by the company’s market value, as that gets divided by the total number of shares to give us the worth of a single share of stock.

What are the types of equity shares?

  1. Subscribed shares
  2. Authorized shares
  3. Paid-up shares
  4. Sweat equity shares
  5. Bonus shares
  6. Rights shares

What is equity share with differential rights?

It implies issuing shares with different rights as to voting rights, dividend received, etc. it is generally done in case the company doesn’t want to hamper the quality of the decision-making process. There can be equity shares with higher voting rights or inferior voting rights and high dividends.