Question

What is share? State the features of shares in brief.

Answer 1

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. share capital. The owner of shares in the corporation is a shareholder (or stockholder) of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company, which may not reflect the market value of those shares.

The main features of equity shares are:

1. They are permanent in nature.
2. Equity shareholders are the actual owners of the company and they bear the highest risk.
3. Equity shares are transferable, i.e. ownership of equity shares can be transferred with or without consideration to other person.
4. Dividend payable to equity shareholders is an appropriation of profit.
5. Equity shareholders do not get fixed rate of dividend.
6. Equity shareholders have the right to control the affairs of the company.
7. The liability of equity shareholders is limited to the extent of their investment.

Answer 2

Answer:

A share represents a fraction of ownership in the company or business. the universal feature of all these is equity participation, the share is one of the units into which total capital is divided.

Possession of shares is deed by the legal document that specifies the number of shares owned by the shareholders and other specifies of the shares such as the par value or the class of shares.