The Perils of the Immediacy Trap and Why we can and cannot do without it
What is the Immediacy Trap and How we can and cannot do without It We are living in a 24/7 media saturated world which keeps us on our toes almost on a continuous basis. coupled with the proliferation of print and visual media as well as social media, the tendency of most people, whether they…
What are Bonds? – Characteristics and Different Types of Bonds
Why Investment is Important ? Every individual needs to put some part of his income into something which would benefit him in the long run. Investment is essential as unavoidable circumstances can arise anytime and anywhere. One needs to invest money into something which would guarantee maximum returns with minimum risks in future. Money saved…
What are Market Indices ?
Stock market indices are ubiquitous. People come across these indices almost every day. However, many are not aware about their existence. For instance everyone knows about NYSE, NASDAQ, FTSE, NIFTY etc. However, few are aware that they are referring to stock market indices when they talk about the markets going up or down. The New…
An organization in order to raise money divides its entire capital into small units of equal value. Each unit is called a share.
A share is nothing but an indivisible unit of a company’s capital to be sold among individuals to increase profit of the organization.
An individual owning one or more than one share of an organization is called a shareholder. In simpler words, an individual purchasing one or more than one share from any private or public organization is called a shareholder.
Why do people invest in shares ?
An organization pays the shareholders for investing in their company’s shares. The income earned by an individual by investing in an organization’s share (private or public) is called as dividend.
What is Retained Earnings ?
The profit earned by an organization is put into use in the following two ways:
What is a Share Certificate ?
When an individual purchases shares from any organization, he/she is issued a certificate as a proof of his investment. Such a certificate issued by an organization to the shareholders is called a share certificate.
Equity shares also called as ordinary shares are the shares where the payment of dividend is directly proportional to the profits earned by the organization. Higher the profits earned, higher the dividend, lower the profits, and lower the dividend. In an equity share, dividends are paid at a fluctuating/floating rate.
Shares which enjoy preference over payment of dividends are called preference shares. Shareholders enjoy fixed rate of dividends in case of preference shares.
Shares held by the management or founders of the organization are called as founder shares.
Bonus shares are often issued to the shareholders when the organization earns surplus profits. The company officials may decide to pay the extra profits to the shareholders either as cash (dividend) or issue a bonus share to them.
Bonus shares are often issued by organizations to the shareholders free of charge as a gift in proportion to their existing shares with the organization.
How to buy shares ?
A stock market is a platform for trading of company’s shares at an agreed rate.
Your email address will not be published. Required fields are marked *
The Perils of the Immediacy Trap and Why we can and cannot do without it
April 3, 2025
