shares and dividends introduction
aryan014:
what do u want to ask u can.
i hope i can help u with this topic
Answers
Answered by
104
Shares :
A unit of ownership that represents an equal proportion of a company's capital is called share. It entitles its holder (shareholder) to an equal claim on the company's profits and equal obligation for the company's debts and losses. The word 'Shares' is the plural form of 'Share'.
Capital of a company is divided into shares. Companies offer the shares for sale so as to raise capital for them. Basically, shares are of two types - (1) Equity Shares and (2) Preference Shares.
Equity Shares -
Equity shares represents the fractional or part ownership of a shareholder in a particular company. The holders of the equity shares have power to get share in the earnings/profits of a company. Also they have the voting rights and they are considered as the members of the company. Also the holders of equity shares have to bear the losses incurred by the company. The share they get in the form of profit is known as the dividend. Equity shareholders are known as the real owners of the company.
Preference Shares -
Preference shares are known as the preferred stock. The preference shareholders get their part of dividends before the equity shareholders.
Dividends are paid at a fixed rate to the preference shareholders and also they do not have the voting rights in the company. If a company enters bankruptcy, the preference shareholders are entitled to be paid from the company's assets first.
Dividends -
Dividend is just like a reward. Dividend is a sum of money that is paid by a company on a regular basis to its shareholders out of its earning. Generally, the dividends are paid by a company to its shareholders on annual basis. Preference shareholders get the dividends at a fixed rate while the equity shareholders do not get it at a fixed rate. A company's dividend is decided by its Board of Directors and it also requires the shareholders' approval. However, it s not obligatory for a company to pay dividend to its shareholders.
A unit of ownership that represents an equal proportion of a company's capital is called share. It entitles its holder (shareholder) to an equal claim on the company's profits and equal obligation for the company's debts and losses. The word 'Shares' is the plural form of 'Share'.
Capital of a company is divided into shares. Companies offer the shares for sale so as to raise capital for them. Basically, shares are of two types - (1) Equity Shares and (2) Preference Shares.
Equity Shares -
Equity shares represents the fractional or part ownership of a shareholder in a particular company. The holders of the equity shares have power to get share in the earnings/profits of a company. Also they have the voting rights and they are considered as the members of the company. Also the holders of equity shares have to bear the losses incurred by the company. The share they get in the form of profit is known as the dividend. Equity shareholders are known as the real owners of the company.
Preference Shares -
Preference shares are known as the preferred stock. The preference shareholders get their part of dividends before the equity shareholders.
Dividends are paid at a fixed rate to the preference shareholders and also they do not have the voting rights in the company. If a company enters bankruptcy, the preference shareholders are entitled to be paid from the company's assets first.
Dividends -
Dividend is just like a reward. Dividend is a sum of money that is paid by a company on a regular basis to its shareholders out of its earning. Generally, the dividends are paid by a company to its shareholders on annual basis. Preference shareholders get the dividends at a fixed rate while the equity shareholders do not get it at a fixed rate. A company's dividend is decided by its Board of Directors and it also requires the shareholders' approval. However, it s not obligatory for a company to pay dividend to its shareholders.
Answered by
43
Shares:
A equal portion of companies capital income or the profit is divided to the owners is known as sharing. The profit will be divided to the shareholders based on the amount or percentage of the share they have in the company.
Dividend:
The dividend is considered as a reward. The sum of money given by the company to the shareholders as the basics amount to take them as a partner of the company.
Similar questions