shares and debenture
TRANSCRIPT
An Introduction
SHARES AND
DEBENTURES
Presented By:-Kirti GuptaUID- 16MBA7028
IntroductionMeaning of Shares and Share CapitalTypes of SharesAdvantages and Disadvantages of SharesIssue of SharesMeaning of DebenturesTypes of DebentureAdvantages and disadvantages of DebentureDifference Between Shares and Debenture
CONTANTS
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
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
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
SHARE CAPITALThe 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
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.
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.
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.
TYPES OF PREFERENCE SHARES
DIV
IDEN
D
• Cumulative Preference Share
• Non Cumulative Preference Shares
PAR
TIC
IPAT
ION
IN
PR
OFI
TS
• Participating Preference share
• Non participating Preference shares
RED
EMPT
ION • Redeem
able Preference share
• Non Redeemable Preference Share
• ConvertablePreference share
• Non Convertible Preference Share
CO
NV
ERTA
BIL
ITY
ADVANTAGES AND DISADVANTAGES OF EQUITY SHARES
ADVANTAGES AND DISADVANTAGE OF PREFERENCE SHARES
DIFFERENCE BETWEEN EQUITY AND PREFERENCE
SHARES
ISSUING SHARES
Call on Shares
Allotment of Shares
Application of Shares
Issuing Prospectus AT PARAT PREMIMUM AT DISCOUNT
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
TYPES OF DEBENTURE
ADVANTAGES AND DISADVANTAGES OF DEBENTURE
DIFFERENCE BETWEEN SHARES AND DEBENTURES
ANY QUESTION ?
THANK YOU..