Following points justify equity investment as the best investment:
(a) Equity shareholders do not get fixed rate of dividend as in the case of preference shares but they enjoy higher dividends during large profits to the companies. Higher dividends appreciates the market value of equity shares in the market, maximizing the shareholders wealth.
(b) It is a source of long-term investment as the equity capital is not redeemable during the lifetime of the company.
(c) Equity shares priovide the voting rights to the shareholders through which they can exercise control over managenent
(d) Marketability of equity share on the stock exchanges make them lucrative source of investment.