There are three main kinds of shares that can be issued by companies: 1. Equity shares represent ownership in the company and have voting rights but no fixed dividend. Dividends are paid after preference shares. 2. Preference shares have a fixed dividend rate and priority over equity shares in dividend payments and capital repayment if the company is liquidated. They typically lack voting rights. 3. Deferred shares are the most junior shares with dividends and capital repayment only occurring after all other shares. Public companies cannot issue deferred shares.

1. Legal Aspects Of Business Topic : Kinds Of Shares

4. What are SHARES? Definitions: Sec 2(46) of THE COMPANIES ACT,1956: “ A share is a share in the share capital of a Company.” Boreland Trustees v/s Steel Bros. & Co. Ltd.: “ A share represents the interest of a share holder in the capital of the Company & this interest is measured by the number of shares he is holding & the amount paid by him to the Company on shares.” Thus, the amount of capital to be raised by a Company is always divided into small parts or units of equal value & these units are called SHARES

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