ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

Equity Shares and its Types

Equity Shares and its Types

Discuss Equity Shares and its Types within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Equity Shares An equity share, commonly referred to as ordinary share also represents the form of fractional ownership in which ...

Reply
 
LinkBack Thread Tools Display Modes
Equity Shares and its Types
Old
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
 
sunandaC
Management Paradise Guru
 
Status: Offline
Posts: 6,685
Join Date: Jul 2010
Equity Shares and its Types - September 20th, 2010

Equity Shares

An equity share, commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture.

The holders of such shares are members of the company and have voting rights. A company may issue such shares with differential rights as to voting, payment of dividend, etc.

The various kinds of equity shares are as follows –

• Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held.

• Bonus Shares: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years.

• Preferred Stock/ Preference shares: Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share.

They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the company’s creditors, bondholders / debenture holders.

• Cumulative Preference Shares. A type of preference shares on which dividend accumulates if remains unpaid. All arrears of preference dividend have to be paid out before paying dividend on equity shares.

• Cumulative Convertible Preference Shares: A type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company.

• Participating Preference Share: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid. Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level.

Security Receipts: Security receipt means a receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation.

Government securities (G-Secs): These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programme. These securities have a fixed coupon that is paid on specific dates on half-yearly basis. These securities are available in wide range of maturity dates, from short dated (less than one year) to long dated (upto twenty years).

Debentures: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. Debentures are normally secured/ charged against the asset of the company in favour of debenture holders.
Friends: (0)
Reply With Quote
Related to Equity Shares and its Types
 
Similar Threads
Thread Thread Starter Forum Replies Last Post
Valuation of equity shares shravangundala Financial Management ( FM ) 3 September 18th, 2010 06:24 PM
TYPES OF EQUITY INSTRUMENTS Abhijeet S Financial Management ( FM ) 0 September 10th, 2010 06:27 PM
TYPES OF EQUITY INSTRUMENTS Abhijeet S Financial Management ( FM ) 0 September 10th, 2010 06:27 PM
rights issue of equity shares Shrikant Hire PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT 0 January 26th, 2010 08:33 PM
Share / Shares Tips / Investment Recommendations on Indian Shares & Stocks, Cash & F shareinfoline JOB OFFERS , Recruitments , Placements !! 2 August 9th, 2009 03:00 AM
 

Reply

Bookmarks

Tags
equity, shares, types

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  
» Ads




» Recent Threads
JAMB Releases 2014 UTME...
Last post by Bhautik Kawa
1 Hour Ago 06:17 PM
0 Replies
Sydney's Royal Easter...
Last post by Pramit Singh
1 Hour Ago 06:06 PM
0 Replies
A Guilty Pleasure :...
Last post by Pramit Singh
2 Hours Ago 06:02 PM
0 Replies
Young Australian forward...
Last post by Pramit Singh
2 Hours Ago 05:58 PM
0 Replies
Solution manual of... ( 1 2 3)
Last post by Amin Shakil
2 Hours Ago 05:54 PM
24 Replies
Project Report on...
Last post by Kirti Soni
2 Hours Ago 05:19 PM
1 Replies
Morning Stock Tips,nifty...
Last post by Riya Bajaj
5 Hours Ago 02:10 PM
7 Replies
Soultion manual on... ( 1 2 3... Last Page)
Last post by Paul Crush
6 Hours Ago 01:06 PM
52 Replies
Live Pepsi IPL7 Chennai...
Last post by Yashwant Naik
20 Hours Ago 11:23 PM
0 Replies
Live Pepsi IPL 7, CSK vs...
Last post by Yashwant Naik
21 Hours Ago 10:54 PM
0 Replies
what are main... ( 1 2)
Last post by Ahmed Shahid
23 Hours Ago 08:56 PM
14 Replies
Can Kings XI Punjab...
Last post by Jagruti Shah
1 Day Ago 07:21 PM
0 Replies
Real Madrid New Hero:...
Last post by Kaushal Mehta
1 Day Ago 05:34 PM
0 Replies
Facts behind Good Friday
Last post by Kaushal Mehta
1 Day Ago 05:28 PM
0 Replies
Cheo Feliciano Dies in...
Last post by Kaushal Mehta
1 Day Ago 05:18 PM
0 Replies
» Projects Helpline
Project on CRM (...
Last post by Vish Kumar
3 Days Ago 06:12 PM
100 Marks Project on...
by msdhoni
Last post by Bhautik Kawa
5 Days Ago 11:55 AM
Ask Gaurav Mishra for...
1 Week Ago 09:33 PM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in