GROUP MEMBERS

DHRUVAKRISHNA PRAMOD KARTHIC NITESH B RAJESH GSATHVIK H.P

SHARES

A share has been defined by the Indian Companies Act, under

sec.2(46) as “A share is the share in the Capital of the

Company”.

SHARE CAPITAL

• (a) Authorized Capital• (b) Issued Capital• (c) Subscribed Capital• (d) Called – up Capital• (e) Paid-up Capital

TYPES OF SHARES

1.EQUITY SHARES-Equity shares means that part of the share capital which is not a Preference share capital. It means all such shares which are not Preference shares. Equity shares are also called as Ordinary Shares.

TYPES OF SHARES

2.PREFERENCE SHARES-Preference shares are those shares which

fulfill both the following two conditions: (i) They carry preferential share right in

respect of dividend at a fixed rate.(ii) They also carry preferential right in regard

to payment of capital on winding up of the company

TYPES OF PREFERENCE SHARES

• Redeemable & Irredeemable• Convertible & Non Convertable• Cumulative and Non – Cumulative

• Deferred shares• Bonus shares Conditions of issuing bonus shares>sufficient amount of undistributed profit>provision in the articles>suitable resoultion>share holders approval>fully paid up shares

PROCEDURE FOR ISSUE OF SHARES

• Issue of Prospectus• Application of Shares• Allotment of Shares• Calls on Shares• Calls–in–Arrears• Calls–in–Advance

ISSUE OF SHARES

• ISSUE OF SHARES AT A PREMIUM

• ISSUE OF SHARES AT A DISCOUNT

• ISSUE OF SHARES AT A PAR

Accounting entries

BUYING AND SELLING OF SHARES

• How can a person buy or sell shares on the stock exchange?

• Direct• Through brokers

PROCEDURE OF BUYING AND SELLING OF SHARES

Buying:-• Place order• Quantity to be traded• trading• After trading Selling:-• Quoting selling value• Quantity to be sold• Selling• After selling

STOCK EXCHANGE

STOCK EXCHANGE

Stock Exchange is an organized market for the purchase and sale of industrial and financial security. It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations

STOCK EXCHANGE

Role of stock exchanges

1. Raising capital for businesses2. Mobilizing savings for investment3. Facilitating company growth4. Profit sharing5. Creating investment opportunities for small

investors6. Government capital-raising for development

projects7. Barometer of the economy8. Facilitates bank lending

REDEMPTION OF SHARES

• Under Companies Act 2006, a company can redeem shares which are issued as redeemable shares by repaying the shareholder, whereupon the shares are cancelled.

• The redemption of any registered shares must be notified to the registrar within one month of redemption.

FORFEITURE OF SHARES

• Share forfeiture is the process by which the directors of a company cancel the power of shareholder if he does not pay his call money when the company demands for it.

• Company will give 14 days notice, after 14 days if shareholder did not pay then company will forfeit his shares and cut off his name from the register of shareholder.

THANK YOU