Go Back   ManagementParadise.com | Management & Business Education Learning Platform Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

Equity Shares

Discuss Equity Shares within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, ...

Reply

 

Thread Tools Display Modes
Equity Shares
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: 6,680
Join Date: Jul 2010
Equity Shares - October 6th, 2010

Total equity capital of a company is divided into equal units of small denominations, each called a share.

For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share.

Thus, the company then is 11 said to have 20, 00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.

There are two ways of investing in equity.

1. Investment through primary market.

2. Investment through secondary market.

1. Investment through primary market:

The primary market provides the channel for sale of new securities.

Primary market provides opportunity to issuers of securities; Government as well as corporate, to raise resources to meet their requirements of investment and/or discharge some obligation.

They may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity, debt etc.

They may issue the securities in domestic market and/or international market.

In the primary market equity share can be issue by following ways:

2. Investment through secondary market:

Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.

Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. For the general investor, the secondary market provides and efficient platform for trading of his securities.


Thus, in the primary market, securities are offered to public for subscription for the purpose of raising capital or fund.

Secondary market is an equity trading venue in which already existing/ pre – issued securities are traded among investors

. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, over – the – counter (OTC) is a part of the dealer market
Advertisements

Friends: (0)
Reply With Quote
Re: Equity Shares
Old
 (2 (permalink))
Rose Marry
rosemarry2 is an unknown quantity at this point
 
rosemarry2
Management Paradise Guru
Status: Offline
Posts: 2,125
Join Date: Apr 2016
Re: Equity Shares - April 18th, 2016

Quote:
Originally Posted by sunandaC View Post
Total equity capital of a company is divided into equal units of small denominations, each called a share.

For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share.

Thus, the company then is 11 said to have 20, 00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.

There are two ways of investing in equity.

1. Investment through primary market.

2. Investment through secondary market.

1. Investment through primary market:

The primary market provides the channel for sale of new securities.

Primary market provides opportunity to issuers of securities; Government as well as corporate, to raise resources to meet their requirements of investment and/or discharge some obligation.

They may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity, debt etc.

They may issue the securities in domestic market and/or international market.

In the primary market equity share can be issue by following ways:

2. Investment through secondary market:

Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.

Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. For the general investor, the secondary market provides and efficient platform for trading of his securities.


Thus, in the primary market, securities are offered to public for subscription for the purpose of raising capital or fund.

Secondary market is an equity trading venue in which already existing/ pre issued securities are traded among investors

. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, over the counter (OTC) is a part of the dealer market
Hey friend,

Here I am up-loading Notes on Risk-Return Relationship on Equity Shares in India, please check attachment below.
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
equity, shares
Related to Equity Shares
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Equity Shares and its Types Sunanda K. Chavan Financial Management ( FM ) 3 April 21st, 2016 03:26 PM
Valuation of equity shares shravangundala Financial Management ( FM ) 4 April 13th, 2016 05:50 PM
All about Shares Insomniac Satan PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT 2 May 25th, 2010 04:58 PM
rights issue of equity shares Shrikant Hire PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT 0 January 26th, 2010 09:33 PM
Share / Shares Tips / Investment Recommendations on Indian Shares & Stocks, Cash & F shareinfoline JOB OFFERS , Recruitments , Placements !! 2 August 9th, 2009 03:00 AM
 


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 Off


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.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.