Advantages to the investors

. From the investor’s point of view, the equity shares offer the following advantages:
1. Most of the profit-making companies pay dividend regularly.
2. An investor can expect bonus-shares form high profit-making companies.
3. They get a right on a pro-rata basis when the company issues new shares. It is issued to the existing shareholders at a price lower than the market price.
4. If a good share is picked up, the market value of investment will appreciate over a period of time.
5. An equity shareholder is one of the owners of the company.
6. Equity shares have liquidity and marketability as these are listed and quoted on stock exchanges.
7. Equity shares of listed companies can be pledged as security to raise loans from banks and other financial institutions.