Briefly explain five features of equity shares

Equity shares, also known as common shares, represent ownership in a company and come with several key features:

**Ownership and Voting Rights**: Equity shareholders are considered part-owners of the company. They typically have voting rights, allowing them to participate in important corporate decisions such as electing the board of directors and approving major changes.

**Dividend Entitlement**: Equity shareholders may receive dividends, which are a share of the company’s profits distributed to shareholders. However, dividends are not guaranteed and depend on the company’s profitability and board decisions.

**Capital Appreciation**: Equity shares have the potential for capital gains, as their value can increase over time based on the company’s performance and market demand. Shareholders can profit by selling their shares at a higher price than they paid.

**Higher Risk**: Equity shares are considered riskier than debt securities like bonds. In the event of liquidation, equity shareholders are paid after all debts and obligations have been settled, meaning they may lose their entire investment if the company fails.

**Limited Liability**: Shareholders have limited liability, meaning they are only responsible for the company's debts up to the amount they invested in the shares. Their personal assets are protected from claims made against the company.