Companies issue shares to raise funds for expansion and other developments, effectively making shareholders part owners. There are three main types of shares: equity shares, which grant voting rights and dividends based on company profits; preference shares, which provide fixed dividends but no voting rights; and deferred shares, which are paid after other shareholders in liquidation. Each share type has unique characteristics and implications for investors.

1. SHARES

2. INTRODUCTION
Companies issue shares as a
means to raise money. This may be
to finance company expansion, a
new development, or to move into
overseas markets. When you buy
shares, you effectively become a
part owner of the company. The
bigger the investment you make,
the bigger your stake will be in the
company.
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3. TYPES OF SHARES
• Equity shares
• Preference shares
• Deferred shares
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4. 4
EQUITY SHARES
• An equity share, normally
known as ordinary share is a
part ownership where each
member is a fractional owner
and initiates the maximum
entrepreneurial liability
related to a trading concern.
These types of shareholders
in any organization possess
the right to vote.

5. FEATU R ES OF EQU ITY
SH AR ES C APITAL
•Equity share capital
remains with the company.
It is given back only when
the company is closed.
•Equity Shareholders
possess voting rights and
select the company’s
management.
•The dividend rate on the
equity capital relies upon
the obtainability of the
surfeit capital. However,
there is no fixed rate of
dividend on the equity
capital.
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6. Types of Equity Share
Authorized Share
Capital
Right Share
Issued Share
Capital
Bonus Share
Subscribed Share
Capital
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Paid Up
Capital
Sweat Equity
Share

7. PREFERENCE
SHARES
• Preference shares,
also known as
preferred stock, is an
exclusive share option
which enables
shareholders to
receive dividends
announced by the
company before the
equity shareholders.
• Preference shares
provide the
shareholders with the
special right to claim
dividends during the
company lifetime, and
also with the option to
claim repayment of
capital, in case of the
wind up of the
company.
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8. F E AT U R E S O F P R E F E R E N C E S H A R E S
• Preferential dividend
option for
shareholders.
• Preference
shareholders do not
have the right to vote.
• Shareholders have a
right to claim the
assets in case of a
wind up of the
company.
• Fixed dividend payout
for shareholders,
irrespective of profit
earned.
• Acts as a source of
hybrid financing.

9. TYPES OF PREFERENCE
SHARES
• Cumulative preference
share
• Non-cumulative
preference shares
• Participating
preference shares
• Non-participating
preference shares
• Redeemable
Preference Share
• Non-redeemable
Preference Shares
• Convertible Preference
Shares
• Non-convertible
Preference Shares

10. WHAT ARE
DEFERRED
SHARES?
A deferred share is a type of
share that does not include any
access to the assets of a firm
that is going through bankruptcy
until all of the common
shareholders and preferred
shareholders have been
compensated.
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11. FEATURES OF DEFERRED
SHARES
• Rate of dividend is not
fixed. It depends upon
the availability of profits.
• Dividend is paid after
payment of dividend on
equity & preference
shares.
• At the time of
liquidation, capital on
these shares is returned
after capital is repaid on
both preference & equity
shares.

12. TYPES OF DEFERRED
SHARES
• Convertible
Preferred
Shares
• Convertible
Bonds
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13. “
”
The more you share,
the more you have.
Leonard Nimoy
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14. THANK YOU