An equity share is the ownership interest in a corporation that has been issued as a stock. In the United States, this type of security is known as a common stock, but it is also known as an ordinary or voting share outside the country. Equity shares are commonly referred to as ordinary shares in Commonwealth realms.
An equity share provides a number of benefits to the investor, including liquidity. Liquidity refers to the volume of shares that are traded on a stock exchange. This means that if you need cash fast, you can sell your equity shares and get the money you need. This is one of the advantages of investing in an equity share, but you should consider your risk appetite before investing.
Equity shares also include voting rights, which enable investors to select individuals to run a business. This gives the company the chance to hire more efficient managers who are capable of increasing turnover and dividends. When this happens, additional profits will accrue to the shareholders and increase their wealth. Equity shares are a good investment because they do not have to be repaid until the company has closed its doors. They can also be traded on a secondary capital market, meaning investors can easily withdraw funds at their own convenience.
Another great benefit of equity shares is that they can be sold easily. Equity shares are listed on stock exchanges and can be purchased and sold at any time during business hours. Moreover, investors can sell their shares for a profit if they are not happy with the company’s performance.