Equity Shares

Equity shares or ordinary shares are the types of shares wherein the holders have ownership rights and can control the functioning of the company through the voting rights that they possess. Equity shareholders enjoy the benefit of liquidity at any time, as the ownership of shares can be easily transferred or converted into cash. They can earn a return on their investment through dividends and capital appreciation. However, they are the biggest risk takers as there is no collateral security attached to their investments, and returns in terms of dividends or capital appreciation are not guaranteed.