What is the other name for the equity sh

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

What is the other name for the equity share of the company?

Options:

Preference share

Right share

Ordinary share

None of these

Correct Answer:

Ordinary share

Explanation:

As per The Companies Act, a company can issue two types of shares (1) preference shares, and (2) equity shares (also called ordinary shares).