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Asked by Swarnalakshmi Last Modified
Answer 
By issuing Equity Shares, Company is not required to make the payment of annual dividend on preference as well as refund of capital at the time of liquidation. Advantage of issuing equity shares:
i. Company is not having an obligation to pay fixed rate of dividend every year.
ii. Company is not having an obligation to repay the amount till liquidation.
iii. Company is not required to pledge the assets for issuing equity shares.
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