Equity share

Equity share is also referred to as ordinary shares and in 
Indian context it is defined by section 85 (2) of the 
companies act 1956. They are the real risk-takers and care-
takers of the company and they enjoy the right of voting. 

Dividends

Dividends and stock repurchases are the two major ways that 
corporations can distribute cash to their shareholders. 
Dividends may also be distributed in the form of stock 
(stock dividends and stock splits), scrip (a promise to pay 
at a future date), or property (typically commodities or 
goods from inventory). By law, dividends must be paid from 
profits; dividends may not be paid from a corporation's 
capital. This law, which is designed to protect the 
corporation's creditors, is known as the impairment of 
capital rule. This law stipulates that dividend payments 
may not exceed the corporation's retained earnings as shown 
on its balance sheet.

Equity share is also referred to as ordinary shares and in 
Indian context it is defined by section 85 (2) of the 
companies act 1956. They are the real risk-takers and care-
takers of the company and they enjoy the right of voting