Showing posts with label Capital. Show all posts
Showing posts with label Capital. Show all posts

Types of Preference Shares

Types of Preference Shares:


1. Non-Cumulative or Simple Preference Share:
A non-cumulative or simple preference shares gives right to fixed percentage dividend of profit of each year. In case no dividend thereon is declared in any year because of absence of profit, the holders of preference shares get nothing nor can they claim unpaid dividend in the subsequent year or years in respect of that year.

Types of Shares

There are mainly two types of shares:
1. Equity shares : Equity Share means that part of the share capital of the company which are not preference shares.
2. Preference Shares: Preference Shares means shares which fulfill the following 2 conditions

What is Capital of a Company?

Capital is the amount invested in the company so that it can carry on its activities. In a company capital refers to 'Share Capital'. The capital clause in Memorandum of Association must state the amount of capital with which