The shares on which there is no any pre fixed rate of dividend is decided but the rate of dividend i...........

General Accounting Principles Accounting for Shares

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called :

Equity Share

Non-cumulative preference share

Non-convertible preference share

Non-guaranteed preference share

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Explanation:

Equity shares are also known as ordinary shares. They are the form of fractional or part ownership in which the shareholder, & takes the maximum business risk. The holders of Equity shares are members of the company and have voting rights.Through their right to vote, these shareholders have a right to participate in the management of the company. Equity shares are the vital source for raising long-term capital.

Equity shareholders are paid on the basis of earnings of the company and do not get a fixed dividend. They are referred to as ‘residual owners’. They receive what is left after all other claims on the company’s income and assets have been settled.