Why is equity share capital called ‘Risk Capital’?

Why is equity share capital called ‘Risk Capital’?

Monjur Alahi

6 views

2025-01-04 04:42

1 Answers

Salim Ahmed Kawsar

Equity shareholders get return only when profits is left after paying interest on debentures and fixed return on preference shares. Therefore, it is called risk capital as it bears maximum risk.

6 views Answered 2023-02-05 15:29

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