Multiple choice

Which of the following is not a feature of equity share?

  1. Residual claim on assets

  2. Voting rights

  3. Redemption of equity shares during the life time of the company

  4. Limited liability
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is not a feature of equity shares. The equity shares cannot be redeemed or paid back during the life time of the company because it has no maturity period. It is debentures and redeemable preference shares, which have fixed maturity period.

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