There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A): Equity shares are the shares that bear the maximum risk and also get the maximum reward.
Reason (R): Dividend on Equity Shares is paid every year.

Assertion (A) is correct but the Reason (R) is not correct.

According to Section 43 of The Companies Act, 2013, an equity share is a share which is not a preference share. In other words, shares which do not enjoy any preferential right in the payment of dividend or repayment of capital, are termed as equity/ordinary shares. The equity shareholders are entitled to share the distributable profits of the company after satisfying the dividend rights of the preference share holders. The dividend on equity shares is not fixed and it may vary from year to year depending upon the amount of profits available for distribution. The equity share capital may be (i) with voting rights; or (ii) with differential rights as to voting, dividend or otherwise in accordance with such rules and subject to such conditions as may be prescribed in the Articles of Association of the company.