Shares
Shares are units of ownership in a company’s capital or as a unit of equity. A company issues shares to the public for raising funds for its expansion. Shareholders are the owners of the company. Shareholders get the right to dividends, which the company pays out of profits earned by the company. Shares can be broadly classified into two types. Preference Shares Preference Shares are issued by the companies seeking to raise capital. They combine the features of debt and equity. Preference Shareholders Preference Shareholders get preferential rights over other shareholders. Preference Shareholders gets · Dividend on priority at the time of dividend distribution · Repayment of capital priority given at the time of liquidation Types of Preference Shares Equity Shares Equity shares are also known as ordinary shares or owner’s equity, and they are the significant sources of long-term financing. Equity Shareholders Bear the highest risk, but the liability is lim
