what is equity share

Equity shares, also known as common stock, represent a form of ownership in a company. Shareholders who own equity shares have the right to share in the profits of the company and to vote on matters of corporate policy and the composition of the board of directors. They do not directly own any assets of the company, but rather own a fractional interest in the company, which in turn owns the assets. Equity shares are a type of security that gives their holders the opportunity to receive dividends from the company's earnings and to benefit from any residual money if the company is liquidated. They are a long-term source of financing for a company and are non-redeemable in nature. Equity shares are classified to differentiate them from preferred shares, and the holders of equity shares are the authentic owners of the company who possess voting rights