{"id":7523,"date":"2025-07-08T07:45:34","date_gmt":"2025-07-08T07:45:34","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7523"},"modified":"2025-07-08T07:45:35","modified_gmt":"2025-07-08T07:45:35","slug":"equity-shares","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/equity-shares\/","title":{"rendered":"Equity Shares"},"content":{"rendered":"

Equity shares<\/a>, also known as ordinary shares<\/a>, represent ownership in a company. When you purchase equity<\/a> shares<\/a>, you become a part-owner of the company and gain certain rights, such as voting on company matters and sharing in profits through dividend<\/a>s. These shares are a primary means for companies to raise capital and are commonly traded on stock exchange<\/a>s.<\/p>\n\n\n\n

Types of Equity Shares<\/h2>\n\n\n\n
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  1. Ordinary Shares<\/strong>: These are the most common type of equity shares, granting shareholders<\/a> voting rights and a share in the company’s profits.<\/li>\n\n\n\n
  2. Preference Shares<\/a><\/strong>: These shares provide holders with a fixed dividend and priority over ordinary shareholders in dividend payments and during liquidation, but usually lack voting rights.<\/li>\n\n\n\n
  3. Bonus Shares<\/strong>: Issued to existing shareholders free of cost, bonus shares are distributed from a company’s retained earnings, increasing the number of shares held without additional investment.<\/li>\n\n\n\n
  4. Rights Shares<\/strong>: Offered to existing shareholders at a discounted price, rights shares allow shareholders to maintain their ownership percentage when a company raises additional capital. <\/li>\n<\/ol>\n\n\n\n

    Key Features of Equity Shares<\/h2>\n\n\n\n