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Equity shares

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(Querist)
09 May 2014 Can anyone let me know what are potential equity shares? What does that includes?
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
09 May 2014 any instrument that has a potential of conversion into equity shares is considered as potential equity eg, share warrants, compulsorily convertible bonds etc
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Teerth

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Teerth (Querist)
14 May 2014 Thank you very much sir.
Hence can say preference shares and debentures as potential equity shares if they can be converted into equity shares in near future?
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
14 May 2014 yes teerth...they are potential equity....
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