Defination of share
“Share capital or ownership capital of a company split into a large number of equal parts are called shares.” share capital provides the foundation of compony’s financial structure.
What is share.
Shares are a ownership into a corporation and financial asset which give profits for an equal distribution, if any declared in the forms of dividend.
A company’s share capital is split up in a large number of equal parts. Each part is known as a share. shares are “Ownership securities” in The company and share capital. Also, Therefore it is called “ownership capital”. A share represents a share in the capital of a company. It is one of the equal parts into which the share capital of a company is divided.
A public limited compony can issue two types of shares: By Under the companies Act.
(a) Preference Shares:- Preference shares are the shares which carry certain prefertial rights- both regarding the dividend and the return of capital are called “Preference shares”.
(b) Equity Shares:-Shares which carry no preference right or priority in the payment of dividend and in the repayment of capital are called equity shares.
What are preference shares and It’s four types