Shares kya hote hai

Share is the smallest unit in which owner’s capital of the company is divided. A share may also be defined as a unit of measure of a shareholder’s interest in the company.

According to Companies Act, a public company can issue two types of shares.

(i) Equity shares
(ii) Preference shares

Equity Shares Equity shares is a common security issued under permanent or owner’s fund capital. Equity shares are the most important source of raising long term capital.

In Companies Act permitting companies to issue two categories of equity shares.

(i) Equity shares with equal rights.
(ii) Equity shares with differential rights as to divided.

Preference Shares Preference shares are those shares which get preference over equity shares in respect to

(i) The payment of dividend.
(ii) The repayment of investment amount during winding up.
Different features of preferences shares are
(i) Fixed rate of dividend
(ii) No security
(iii) Voting rights
(iv) Hybrid security