Question

Discuss the features of various types of shares and debentures

Answer 1

SHARES

1.Equity Shares

2.Preference Shares

There are various Types of Preference Shares with differences in their structure.

Some of these are cumulative,

non-cumulative

participating

non-participating

redeemable

irredeemable

convertible

non-convertible

callable

adjustable rate preference shares.

DEBENTURES

There are various types of debentures like

redeemable

irredeemable

perpetual

convertible

non-convertible

fully, partly, secured, mortgage, unsecured, naked, first mortgaged, second mortgaged

the bearer, fixed, floating rate, coupon rate, zero coupon, secured premium notes, callable, puttable, etc.

Answer 2

Hey mate ✌️✌️


There are two types of Shares ⤵️⤵️

(1) Equity share ➡️Those shares which do not carry any preferential right in the payment of annual dividend and repayment of capital in the event of liquidation .

Features of Equity share ⤵️⤵️⤵️

>To participate in managerial activities.

>To earn more by way of dividend.

>To Earn capital Profit.


(2) Preference share ➡️Those shares which carry any preferential right in the payment of annual dividend and repayment of capital in the event of liquidation .


Features of Preference share ⤵️⤵️⤵️

>Regular income.

>Preference at the time of liquidation.

>Voting rights on related revolution

Types of Preference shares ⤵️⤵️⤵️⤵️

1.Convertible Preference share

2.Non convertible Preference share

3.Cumulative Preference share

4.Non cumulative Preference share

(3) Debentures ➡️It refers to the loan to the company by the debenture holder on which they receive a fixed rate of interest.


✨ Hope this helps you ✨