The Role of Insurance in #MeToo Movement
In 2017, Forbes magazine named #MeToo movement as the “person of the year.” This is because the #MeToo movement has shaken the corporate world to its very core. It is a sad fact that sexual harassment still remains a reality in the workplace. For instance, it is estimated that at least one in three women […]
Economic Impact of the Boeing Fiasco
Boeing Corporation which is headquartered in the United States is one of the biggest names in the airline industry. When it comes to the manufacturing of planes, there is an effective duopoly in the global market. Boeing and Airbus are the only two companies in the world which manufacture the jets which are used by […]
Companies Need to Create Long Term Value to Survive the Uber Competitive Market
The 24/7 Real Time Global Marketplace Makes Firms Live for the Moment The present global marketplace as well as regional and nations marketplaces are uber competitive and in addition, dominated and driven by rapidly changing market conditions where short term thinking triumphs and the scenario is complicated with the incessant buzz of 24/7 news cycles […]
Intercultural Communication: The Hofstede Model
One of the most widely used frameworks for analyzing cultural differences is the model developed by the eminent cultural theorist, Geert Hofstede. In this model, the differences in culture between countries have been plotted along five dimensions, which can be used as the basis for predicting the cultural differences between different countries. The model was […]
The Big Fat Bitcoin Bubble
If you are an investor who is even remotely connected to financial markets, the odds are that you have heard about the spectacular rise of Bitcoin. The crypto-currency has grown from $10,000 to $17,000 in a week. Many believe that this is a bubble. However, there are others who believe that the rise of Bitcoin […]
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.
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