Scribd Logo
Upload

Welcome to Scribd!

  • Sec. 2 (46) - A Share in The Share: Capital of Company

    Uploaded by

    imad
    61 views5 pages
    Shares represent a right to participate in a company's profits and assets. There are two main types of shares - preference shares, which receive a fixed dividend before equity shares and have preferential rights in winding up, and equity shares, which participate in profits if declared and have voting rights. Shares can be issued as rights issues to existing shareholders or through preferential issues, public issues, IPOs or follow on issues to other investors. Dividends represent a share of distributable profits and can be paid out of current year profits, previous year profits held as general reserve, or both. The depository system involves NSDL, CDSL, stock exchanges and brokers to facilitate share transactions between companies and investors through demat accounts

    Original Description:

    Original Title

    SHARES

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Shares represent a right to participate in a company's profits and assets. There are two main types of shares - preference shares, which receive a fixed dividend before equity shares and have preferential rights in winding up, and equity shares, which participate in profits if declared and have voting rights. Shares can be issued as rights issues to existing shareholders or through preferential issues, public issues, IPOs or follow on issues to other investors. Dividends represent a share of distributable profits and can be paid out of current year profits, previous year profits held as general reserve, or both. The depository system involves NSDL, CDSL, stock exchanges and brokers to facilitate share transactions between companies and investors through demat accounts

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    61 views5 pages

    Sec. 2 (46) - A Share in The Share: Capital of Company

    Uploaded by

    imad
    Shares represent a right to participate in a company's profits and assets. There are two main types of shares - preference shares, which receive a fixed dividend before equity shares and have preferential rights in winding up, and equity shares, which participate in profits if declared and have voting rights. Shares can be issued as rights issues to existing shareholders or through preferential issues, public issues, IPOs or follow on issues to other investors. Dividends represent a share of distributable profits and can be paid out of current year profits, previous year profits held as general reserve, or both. The depository system involves NSDL, CDSL, stock exchanges and brokers to facilitate share transactions between companies and investors through demat accounts

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 5

    SHARES

    Sec. 2 (46) - A share in the Share


    capital of Company
     
    A right to participate in
    • profits of a company, when dividend
    is declared (`Going Concern`)
    • assets of the company, when wound
    up

    1
    IMAD
    KINDS
    Preference OF SHARE
    Share Equity Share
    •Fixed dividend in • Right to
    preference to participate in
    equity; profits of Co.,
    •Preferential right if declared
    in winding up
    Types Types
    •Cumulative • With Voting
    Preference shares rights
    •Non- Cumulative • With
    Preference shares Differential
    rights 2
    ISSUE OF SHARE
    Rights issue
    • To existing shareholder
    • 2 years from Incorporation or1 year
    from 1st allotment
    Share issue other than Rights
    • Preferential Issue – selected investors
    • Public Issue
    o Initial Public Offering
    o Follow on Issue
    Conversion of Loan/Debentures into
    Equity 3
    DIVIDEND
    Meaning
    • Share out of `distributable profits`
    • Dividend also includes `interim
    dividend`
    How Distributed
    • out of distributable profits of that
    year
    • of previous financial year [General
    Reserve]
    • out of both
    4
    Depository
    BANKS
    System
    NSDL/CDSL
    BSE/NSE

    Buying Broker Selling Broker

    Company

    DP DP

    Member Investor
    5

    You might also like