Which of the following statements is NOT true regarding equity share capital?

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Economics · Corporate Finance

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Equity shares represent creditorship securities for the investors.

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Answer 1

Equity shares represent creditorship securities for the investors.

Answer 2

Equity share capital is a high-risk, high-reward source of finance.

Answer 3

Equity shareholders have a residual claim on income and assets, alongside limited liability.

Answer 4

Equity share capital represents ownership capital of the company.

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