Presented By:

Nosheen Mehfooz
M.Awais
Anum Aziz
M.Shayan
S. Hammad
S. Rameez Khalid
 A Shares is one unit into which the total share
capital is divided.
 Shares are the marketable instruments issued by
the companies in order to raise the required
capital.
 In corporate finance, the term is used for a medium- to
long-term debt instrument used by large companies
to borrow money. A debenture is thus like a
certificate of loan or a loan bond evidencing the fact that
the company is liable to pay a specified amount with
interest and although the money raised by the
debentures becomes a part of the company's capital
structure.
 A
 A
SHARES
 Ownership of capital
 Dividend right in the profit of
company
 Voting right in annual meeting
 Not convertible into debt
 Residual right at the time of
liquidation
 Not mandatory to declare
dividend
 Owner of company
DEBENTURES
 Debt for the company
 Right to receive interest against the
fund given by them
 Do not have any voting right.
 Can be issue with an option of
converted into shares
 First right on company assets after
statutory dues and employee
payments.
 Mandatory for payment and
repayment of interest and debt
 Creditor of company
 Raising finance by issuing shares to the public to
generate amount from them from the share capital of the
company, this process is called Issue of shares.

 By issuing debentures means issue of a certificate by the

company under its seal which is an acknowledgment of
debt taken by the company.
 Issue of Shares & Debentures at Par

 Issue of Shares & Debentures at Premium

 Issue of Shares & Debentures at Discount

Shares and Debentures are said to be issued at par

when they are issued at a price equal to the face

value.
Shares and Debentures are said to be issued at premium when

they are issued at a price higher than the face value.

Example: A Debenture of Rs.100 issued at Rs.110 and excess

amount of Rs.10 is premium amount.

Shares and Debentures are said to be issued at discount

When a company issues shares at a price lower than the face

value or Par value.

Example: A Debenture of Rs.100 issued at Rs.90.

 Public Ltd Company

Directors

Company/Shares Details Issue Prospectus Application Form

Shares Value
Inviting Public
At Par
Application Fill up Application Application Money
Premium
Directors Scrutinize Application
Discount
Lump Sum Installment
Allotment of Shares
Rejected Accepted

Share Certificate
Return Back Money
TRANSFER OF SHARES
• A share transfer is the process of transferring existing shares
from one person to another; either by sale or gift.
• Shares can be transferred from a shareholder to another person
(either a new or existing shareholder).
• Typically, shares are transferred to introduce a new shareholder.
PERSONS INVOLVED IN THE TRANSFER

– Subscribers to the memorandum (first share holders)

– Legal Representative, in case of a deceased.

– Transferor.

– Transferee.

– Company (whether listed/ unlisted).

PROCESS OF SHARE TRANSFER
FORM FOR TRANSFER OF SHARES