Presented To :

Prof. Kashmir Singh

Presented By :
Kanishak Kathuria
Share :
A certificate giving the
person or company
listed a portion of
ownership in
a stock, mutual fund, or
some other investment
vehicle. A share is the
smallest unit of
ownership. They may
be bought or sold on or
off an exchange.
Types Of Share :
Ordinary shares

Preference shares

Deferred shares
Ordinary shares :
 shares that are not preferred share and do not
have any predetermined dividend amounts. 

 Ordinary shareholders are entitled to receive

dividends if any are available after dividends on
preferred shares are paid.

 Ordinary shareholders have voting rights.

Preference shares :
 These shares have a preferential position than other
Shares, either in the terms of dividend payment or
return of capital or both.

 Preference shares carry a predetermined fixed rate of

dividend percentage payment.

 Preference shareholders normally do not have voting

rights.
Deferred Shares :
The deferred aspect of the shares relates to the low
priority position of shareholders in regard to
payment of dividends and/or return of capital.

Are seen as the most risky and are often taken up

by directors to indicate their confidence in the
company.

In times of success, these shares offer high returns

because deferred shareholders will have access to
the remaining distributable profits after ordinary
dividends are paid.
Example Of shares :
Cont……
Investment Objectives :
 High returns.

 Regular income.

 Pledging facility
Risk Involved :
 Shares involves high risk beacause
there is no guarantee of returns.
 The money could be back only
according to the prices dictated by the
stock market, which depends on the
demand & supply.
Shares Can Be Purchased From :
 Primary Market – When a company
issues by public offer.

 Secondary Market – From the stock

exchanges.
Duration Of Shares :
 Shares have no timeframe.

 Shares exists as long as the company

exists.