Accounts Shares, Debenture

Meaning, Nature & Types of Shares

Shares(Meaning)
Total capitals of small of the company are divided into units of small denominations. Each units is called `shares`. In other words shares are denominations of share capital. E.g. if the total capital of the company is 5, 00,000 divided into 10,000 units of Rs.50 Each unit of Rs.50 is called a share.

Nature of Shares
The shares of the company are moveable property, transferable in the manner provided by the A.O.A. Shares are treated as goods.

Types of Shares
There are two types of shares:-

1. Equity Shares
   
   • Those shares which are paid dividend only a fixed
   • Profits are left after the pref. shareholders Have been paid at fixed rate of dividends.
   • Shareholders have voting rights & controls the
2. .Preference Shares
   
   • when Those shares which have paid dividend at rate before any dividend is paid on the equity Each shares. & When the company is wound
     

Q. DIFF. B/W Preferenceshares & equity shares

Q. DIFF. B/W Capital Reserver & Reserve Capital

Meaning, Nature & types of SharesCapital

Shares Capital(Meaning)
The capital of the company is divided into shares. And shares capital means the capital raised by the company by the issue of shares.

Nature of shares capital
Share capital is generally large distributed. In case of private companies there are max.50 subscribers &there can be unlimited subscribers in case of public company.

Types of Shares Capital

1. Authorized ,Registered or nominal capital
2. Issued capital
3. Subscribed capital
4. Called up capital
5. Paid up capital
6. Reserve capital (which has not been called up by the company)

Capital Reserve:-
When reserve is created out of capital profit and which are not earned in the normal course of the business, they are called Capital Reserve. These profits cannot be utilized for the distribution of dividend.