SHARES

What is Share
A share is referred to as a unit of ownership
which represents an equal proportion of a
company's capital. A share entitles the
shareholders to an equal claim on profit and
losses of the company.
 SHARES

• SHARES ARE EQUITY FINANCIAL INTRUMENT

• THEY ARE RISKIER ASSET AS COMPARE TO OTHER ASSET , LIKE

REAL ESATE . DEPOSITS ,BONDS , GOLD
 TYPES OF SHARES
• There are majorly two kinds of shares i.e.

• Equity shares and preference shares.

 Difference Between Equity Share And Preference Share

• What Is The Difference Between Equity Share And Preference

Share?
• Both represent ownership capital and entitles you to have a claim on
the company’s profit in the form of a dividend, announced by the
corporate. When profit share is announced, preference shareholders
have the first claim. They receive their bonus at a fixed rate but don’t
enjoy voting rights in the majority of companies like equity
shareholders do.
Difference Between Equity Share And Preference Share

• When we talk about investing in stocks, we usually

refer to equity shares, which are also called general
shares. With this, a company offers you partial
ownership in the company and therefore, it involves
high risk. Profit on equity shares depends on the
company’s performance. And so, your dividend
percentage will also fluctuate, which means you might
not receive any dividend at times. But with preference
shares, the company is bound to pay the dividend.
 Difference Between Equity Share And Preference Share

• Secondly, risks of an equity shareholder are the

same as what the company experience. As
compared to them, risk exposure of preference
shareholders is nominal. So, they also have a
preferential claim on receiving their capital back
before the company settles its general
shareholders.
Difference Between Equity Share And Preference Share
 BONDS
• A bond is a fixed income instrument that
represents a loan made by an investor to a
borrower (typically corporate or
governmental). ... Bonds are used by
companies, municipalities, states, and
sovereign governments to finance projects
and operations. Owners of bonds are
debtholders, or creditors, of the issuer.
DIFFERENCE BETWEEN BONDS &
DEBENTURES
DIFFERNCE BETWEEN SHARES & DEBENTURES