Reasons for why ordinary share capital is attractive, Finance Basics

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Reasons for why Ordinary Share Capital is Attractive

Reasons for why ordinary share capital is attractive despite to be risky

  • Shares are used as securities for loans as a compromise of the market price of a share.
  • Its value grows.
  • They are transferable at capital grow.
  • They influence the company's decisions.
  • Carry variable returns - is good under high profit
  • Perpetual investment - thus a perpetual return
  • Such shares are used as guarantees for credibility.

 

 


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