Which of the following statements correctly describe equity shares?A.…

The correct answer is Option (2) → B and C only

Equity shareholders are the owners who carry the risk of the company. In return they control it and take whatever profit is left once the preference shareholders, who come first, have been paid.

A. Dividend rate is fixed Incorrect. An equity shareholder gets more in a good year and less, or nothing, in a bad one, because the dividend depends on the profit the directors decide to distribute. A fixed rate belongs to preference shares.

B. Carry voting rights Correct. As owners, equity shareholders vote at general meetings, for example to elect directors, which is how they control the company.

C. Paid dividend after preference dividend Correct. The profit available for dividend goes first to preference shareholders, at their fixed rate; equity shareholders share the rest.

D. Preferential right of capital payment Incorrect. On winding up, preference shareholders are repaid first; equity shareholders get their capital back only after them.