BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Solution. When the stock markets are rising, equity shares are easier to sell, even at a greater price. In such a situation, firms frequently prefer to use equity.

Detailed explanation-2: -The equity meaning in share market is nothing but these shares which investors can buy or sell. The equity market is also called a stock market where traders buy or sell shares. The companies listed on exchanges offer a fraction of their equity to public investors.

Detailed explanation-3: -There are two types of stock markets, Primary and Secondary markets. Please note that it only trades shares while the stock market trades bonds, derivatives, and forex, and both have distinct modus operandi as well.

Detailed explanation-4: -The company follows the rules prescribed by Companies Act 2013 while issuing the shares. Issue of Prospectus, Receiving Applications, Allotment of Shares are three basic steps of the procedure of issuing the shares. The process of creating new shares is known as Allocation or allotment.

Detailed explanation-5: -Shares are units of equity ownership in a corporation. For some companies, shares exist as a financial asset providing for an equal distribution of any residual profits, if any are declared, in the form of dividends. Shareholders of a stock that pays no dividends do not participate in a distribution of profits.