Can You Describe The Share?

Share. The company ordinance defines share as "a share in the share capital of the company" It represents equal portions into which the capital is divided. Each of these portions is called as share of the company. A public company generally issues various chases of shares in order to satisfy the requirements of different investors. The powers and rights of various chases of share are laid down in the Articles and prospectus of the company.

1. Ordinary share. These shareholders have no special rights in regard to dividend. They are entitled to participate in the profits earned by the company after the payment of fix dividend to preference shareholder
2. Deferred share. These shares are issued to promoters who take initiative in the formation of the joint stock company. So these are also called "Founders shares." Some time such shares are allotted to venders as fully or partially valuable shares, as these may have entitlement to participate in all profits remaining after payment of shares.
3. Preference shares. These shareholders have preferential rights or privileges in respect of the payment of dividend or repayment of capital in the event of winding up the company. They are entitled to receive a fixed rate of dividend out of the profits of the company in priority to other type of share.