State Limitations Of Equity Shares

State the limitations of equity shares


1.The voting power and earnings of existing equity shareholders is affected by issue of additional equity shares.
2. Raising funds through issue of equity shares involves a lot of formalities and a lengthy procedure.
3. Since the dividend payable to equity shareholders keeps on fluctuating, investors who want steady income do not prefer them.
4. The cost of raising funds through equity shares is generally more as compared to other sources.