SHARES

1
 SHARE
A Share is a share in the share capital of the company.

A share is a fraction into which the total share capital of company

is divided.
 SHARE CAPITAL
•Amount of capital raised by the issue of shares

KINDS OF SHARE CAPITAL

AUTHORISED ISSUED SUBSCRIBED PAID UP RESERVE

CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL
 Kinds of Shares
• Equity Shares
• Preference Shares
 Preference Shares
• These are shares which are preferred over equity shares in
payment of dividend, the preference shareholders are the
first to get dividends if the company decides to distribute
or pay dividends.
&
• To claim repayment of capital on wind up. In case of
preference shares, the percentage of dividend is fixed i.e.
the holders get the fixed dividend before any dividend is
paid to other classes of shareholders.
 Equity Shares
• Those shares which are not preference shares
• Carry the right to receive the whole of surplus profits
after the preference shares, if any, have received their
fixed dividend

•Equity shareholders are owners of the company & have

voting rights.
 Allotment of Share Capital (Public
companies)

• Filing of Prospectus with ROC & Vetting of Prospectus by

SEBI
• Appointment of brokers, bankers & underwriters
• Application to Stock- exchange
• De-Materialization of shares
• Issue of Shares (IPO)
• Minimum subscription
• Allotment of shares