Explain the different kinds of share which a company may issue
Answers
Answered by
0
only a public company can issue shares.
the shares are of 2 types
1.equity shares and 2. preference shares
A person who holds an equity share is called a share holder and is treated as an owner of the company. They acquire right to vote in choosing the board of directors. The return they get on their investment in equity shares is called dividend, it depends on the profit of the company.
A person who holds preference shares is called a preference shareholder. They do not get any right to vote. Dividends are paid irrespective of profits or losses of the company. The risk is very less. There are types of preference shares
1.cummulative preference shares
2.non cummulative
3.buy back
4.convertible
5.participating
the shares are of 2 types
1.equity shares and 2. preference shares
A person who holds an equity share is called a share holder and is treated as an owner of the company. They acquire right to vote in choosing the board of directors. The return they get on their investment in equity shares is called dividend, it depends on the profit of the company.
A person who holds preference shares is called a preference shareholder. They do not get any right to vote. Dividends are paid irrespective of profits or losses of the company. The risk is very less. There are types of preference shares
1.cummulative preference shares
2.non cummulative
3.buy back
4.convertible
5.participating
Similar questions