TYPES OF SHARES:

TYPES OF SHARES:

 

The articles of association of the society will define the rights  and duties accrue exclusive to members who are shareholders in a companion. Where a organization has a distribute to shares and debentures to rise the capital.

Ordinary Shares or Equity Shares:

• Equity Shares is also called as ordinary shares.
• Ordinary shares are those share which does not carry any kind of voting rights.
•  They enjoy higher rate of dividend when the company is earning more profits.
  

Preference Shares:

•  They enjoy advantageous of voting rights,
•  Dividend is distributed in fixed rate..
• Preference share holders dividends will enjoy a distribute which is desirable as to dividend than ordinarily entitles or ordinary shares.
• There are 5 kinds of Preference shares, find types of preference shares here
  

Redeemable Shares
Redeemable shares are those shares organization is entitled to buy again from its members. Where shares are cancels the shares companionship generally cancels them. However, a funds apportion is a percentage which is preserved on redemption by the troupe and can later be issues again.

Bonus Shares
Bonus shares are those shares issued to equilibrium to their existing shareholders, issues as fully  or partly not to paid them. These shares are issue d when company are earning good amount of profits.