Please tell me what is the meaning of equity share,
dividends,share exchange,etc, please give me clear & briefly
answer?

Answer Posted / ramgopal somasundaram

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.

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