What is share and It’s types

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.

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What are preference shares and It’s four types

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