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shares and share capital

24/10/2009 by admin

Share

A share is one unit of ownership of a company. If a company has issued 1,000,000 shares, and a person owns 1000 of them, he owns .001% of the company.A unit of ownership interest in a corporation or financial asset

Share Capital

Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase. Share capital can be composed of both common and preferred shares.

Also known as “equity financing”. Capital with which a company is started, consisting of shares issued to investors.

Share Certificate

A share certificate is a written document signed on behalf of a corporation, and serves as legal proof of ownership of the number of shares indicated.

Also referred to as a “stock certificate”.it cocnsists of :  the face value of the share, the number of shares represented by the certificate, their distinctive numbers, the certificate number, the holder’s name is entered.

Shareholders’ Rights

shareholder is one of the owners of the company, he has a right to participate in the policy making decisions of the company and the right to vote at important such meetings. He has the right to appoint the auditor,and  is also entitled to receive his share of profits made by the company in the shape of dividends, and if the company chooses to capitalize part of the reserves by issuing bonus shares, the shareholder will receive such shares according to his entitlement.

Share Premium

it is an amount in excess of the face value of a share charged by a company on its share issue. The premium is supposed to represent the high value of the share and its bright prospects:

Short Hedge

Buying a put option to protect the value of securities incase, a short seller has sold for the price of the option.

Filed Under: General Tagged With: share, share capial, share certificate, share premium, shareholder's right, short hedge

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