What are Shares and Types of share ? A company’s capital is divided into small equal units of a finite number. Each unit is known as a share. In simple terms, a share is a percentage of ownership in a company or a financial asset. Investors who hold shares of any company are known as shareholders. For example ; if the market capitalization of a company is Rs. 10 lakh, and a single share is priced at Rs. 10 then the number of shares to be issued will be 1 lakh. TYPES OF SHARES 1. PREFERENCE SHARES As the name suggests, this type of share gives certain preferential rights as compared to other types of share. The main benefits that preference shareholders have are: They get first preference when it comes to the payout of dividend, i. e. a share of the profit earned by the company When the company winds up, preference shareholders have the first right in terms of getting repaid Further, there are three sub- types in preference shares: Cumulative preference shares: Cumulative shareholders h
Definition Definition of 'Stock Market' Definition : It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital. Description : Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI). A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange and the Nat