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.