Equity share holders are the real owner of the company. They have voting right. They take part in the meeting of the company. They also participate in taking decision for the efficient management of the company. But in equity share dividend rate is not fixed. They can’t redeem during the life time of the company.
Why people preferred to purchase an equity share:
People take more and more preference to purchase an equity share first of all they are more valuable when sale in the market as compared to the preference share and debenture. They are equivalent to the cash. They are low cost when they purchase. Otherwise when we purchase a preference share then it may be in the form of stock (means bulk quantity). It is not easy for a middle class people to purchase a preference share but every person is capable to purchase an equity share.
