This document provides an introduction to shares, share capital, debentures, and the differences between them. It discusses key terms like IPO, FPO, equity shares, preference shares, debentures, and issuing shares. The main types of each are outlined, along with their advantages and disadvantages. Shares represent ownership in a company and allow shareholders to share in profits as dividends, while debentures are like loans that pay interest but do not provide ownership. This introduction covers the basic concepts for investors regarding the capital structure of companies.

1. An Introduction
Presented By:-
Kirti Gupta
UID- 16MBA7028

2. Introduction
Meaning of Shares and Share Capital
Types of Shares
Advantages and Disadvantages of Shares
Issue of Shares
Meaning of Debentures
Types of Debenture
Advantages and disadvantages of Debenture
Difference Between Shares and Debenture
CONTANTS

3. Companies (Private and Public) need capital either to
increase their productivity or to increase their market reach
or to diversify or to purchase latest modern equipment's.
Companies go in for IPO and if they have already gone for
IPO then they go for FPO. The only thing they do in either
IPO or FPO is to sell the shares or debentures to investors
(the term investor here represents retail investors, financial
institutions, government, high net worth individuals, banks
etc.). Whether they issue shares or debentures totally
depends upon the concerned company.
INTRODUCTION

4. WHAT IS IPO?
An initial public offering, or IPO, is the
first sale of stock by a company to the
public. A company can raise money by
issuing either debt or equity. If the
company has never issued equity to the
public, it's known as an IPO.
IPOs are often issued by smaller,
younger companies seeking capital to
expand

5. FPO (Follow on Public Offer) is a process
by which a company, which is already
listed on an exchange, issues new shares to
the investors or the existing shareholders,
usually the promoters. FPO is used by
companies to diversify their equity base.
WHAT IS FPO?
Follow on Public Offer

6. SHARE CAPITAL
The part of the capital of a company that comes from the issue of
shares.
Authorized, registered
or nominal capital
Issued capital
Subscribed capital
Called up Capital
Paid up Capital
Reserve Capital

7. SHARES
One of the equal parts into
which a company's capital is
divided, entitling the holder to a
proportion of the profits. It is
divided into a 'number of
indivisible units of a fixed
amount.

8. The holders of these shares are
the real owners of the company.
They have a voting right in the
meetings of holders of the
company.
They have a control over the
working of the company. Equity
share holders are paid dividend
after paying it to the preference
shareholders
TYPES OF SHARES
Equity Shares
Preference
Shares
Preference shares, more commonly
referred to as preferred stock,
are shares of a company's stock
with dividends that are paid out to
shareholders before common stock
dividends are issued. If the
company enters bankruptcy, the
shareholders with preferred stock
are entitled to be paid from
company assets first.

9. TYPES OF EQUITY
SHARES
Rights Share: These are the shares issued to the existing
shareholders of a company. Such kind of shares is issued to
protect the ownership rights of the investors.
Bonus share: These are the type of shares given by the
company to its shareholders as a dividend.
Sweat Equity Share: These shares are issued to exceptional
employees or directors of the company for their exceptional
job in terms of providing know-how or intellectual property
rights to the company.

10. TYPES OF PREFERENCE SHARES
DIVIDEND
• Cumulative
Preference
Share
• Non
Cumulative
Preference
Shares
PARTICIPATIONINPROFITS
• Participatin
g
Preference
share
• Non
participatin
g
Preference
shares
REDEMPTION
• Redeemabl
e
Preference
share
• Non
Redeemabl
e
Preference
Share
• Convertabl
ePreferenc
e share
• Non
Convertibl
e
Preference
Share
CONVERTABILITY

11. ADVANTAGES AND DISADVANTAGES
OF EQUITY SHARES

12. ADVANTAGES AND DISADVANTAGE OF
PREFERENCE SHARES

13. DIFFERENCE BETWEEN EQUITY
AND PREFERENCE SHARES

14. ISSUING SHARES
Call on Shares
Allotment of Shares
Application of Shares
Issuing Prospectus AT PAR
AT PREMIMUM
AT DISCOUNT

15. A debenture is a medium to long-term
debt instrument used by large
companies to borrow money, at a fixed
rate of interest. A debenture is thus
like a certificate of loan or a loan bond
evidencing the fact that the company is
liable to pay a specified amount with
interest and although the money raised
by the debentures becomes a part of
the company's capital structure, it does
not become share capital .
DEBENTURE

16. TYPES OF DEBENTURE

17. ADVANTAGES AND
DISADVANTAGES OF DEBENTURE

18. DIFFERENCE BETWEEN SHARES
AND DEBENTURES

20. THANK YOU..