Merits.

As far as the company is concerned, equity shares are considered superior to any other form of capital. From the point of view of a company, the equity share offers the following advantages:
1. They provides permanent capital. The amount invested in equity shares need not be repaid during the life-time of the company.
2. They so not create any charge on the assets of the company. So, the company gets the freedom to issue other forms of securities by utilizing its fixed assets.
3. They do not create any fixed charge against the income of the company. Therefore, the company does not have any obligation to pay fixed dividend to the shareholders.
4. They serve as a base for further borrowings because greater the amount of equity capita greater the scope for raising further debt.