Equity Shares
Equity shares refer to the ownership units of a company, issued through an Initial Public Offering (IPO), traded on the stock market, or made available via a Follow-on Public Offer (FPO). For a company, the primary objective of issuing equity shares is to raise capital to fund its operations or growth. Investors who purchase equity shares gain several benefits, such as voting rights in the company, the potential for dividends, and a claim to the company’s assets if it is liquidated. These shares represent ownership and a share in the company's profits and risks.
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