Advertisements
Advertisements
Questions
State any 4 features of shares.
Answer the following question.
State the features of shares.
Solution
Following are the features of Shares:
- Meaning: Share is the smallest unit in the total share capital of a company.
- Ownership: The owner of the share is called a shareholder. It shows the ownership of a shareholder in the company.
- Distinctive Number: Unless dematerialised, each share has a distinct number for identification. It is mentioned in the Share Certificate.
- Evidence of title: A share certificate is issued by a company under its common seal. It is a document of title of ownership of shares. A share is not any visible thing. It is shown by share certificate or in the form of Demat share.
- Each share has a value expressed in terms of money. There may be:
(a) Face value: This value is written on the share certificate and mentioned in the Memorandum of Association.
(b) Issue price: It is the price at which the company sells its shares.
(c) Market Value: This value of a share is determined by demand and supply forces in the share market. Rights A share confers certain rights on its holder such as the right to receive the dividend, the right to inspect statutory books, the right to attend shareholders' meetings, and the right to vote at such meetings, etc. - Income: A shareholder is entitled to get a share in the net profit of the company. It is called a dividend.
- Transferability: The shares of a public limited company are freely transferable in the manner provided in the Articles of Association.
- Property of Shareholder: Share is a movable property of a shareholder.
- Kinds of Shares: A Company can issue two kinds of shares:(a) Equity shares.
(b) Preference shares. - Rights: A share confers certain rights on its holder such as right to receive dividend, right to inspect statutory books, right to attend shareholders’ meetings, and right to vote at such meetings, etc.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
Select the correct answer from the options given below and rewrite the statement.
______ are residual claimants against the income or assets of the company.
Select the correct answer from the options given below and rewrite the statement.
______ participate in the management of their company
Select the correct answer from the options given below and rewrite the statement.
The accumulated dividend is paid to ______ preference shares.
Write a word or a term or a phrase which can substitute the following statement.
A document of title of ownership of shares.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is written on the share certificate.
State whether the following statement is true or false.
Equity shareholders enjoy fixed rate of dividend.
State whether the following statement is true or false.
Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Answer in one sentence.
What is a share?
Answer in one sentence.
What are Equity Shares?
Answer in one sentence.
What are cumulative preference shares?
Justify the following statement.
Equity shareholders are real owners and controllers of company.
Justify the following statement.
Different investors have different preferences.
Justify the following statement.
Equity share capital is risk capital.
State the features of equity shares.
The dividend is paid first to ______ shareholders.
