Hi, I have a question and I hope anyone could answer it:
Why are equity shareholders known as ‘residual owners’?
Examgyani Team
Asked: November 6, 20232023-11-06T16:58:40+05:30
2023-11-06T16:58:40+05:30In: Commerce
Why are equity shareholders known as ‘residual owners’?
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Equity shareholders do not get fixed dividend, but are paid only when tax to the government, interest on loans an debentures and preference dividend have been paid. So, they are referred to as ‘residual owners’