SHARES

ITS ALL ABOUT SHARES?

A SHARE is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, use of the word shares in the plural to refer to stock is so common that it almost replaces the word stock itself. And especially in American English, the plural stocks is widely used instead of shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural stocks be used to refer only to stock of more than one company are rarely heard nowadays. The income received from shares is called a dividend, and a person who owns shares is called a shareholder.

WHAT IS SHARES?
y A share is one of a finite number of equal portions in

the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share. Voting and Non-Voting shares are also known as Class A and B shares

y A share (aka equity shares) of stock represents a share of ownership in a corporation and typically take the form of shares of common stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date.

CONTINUE
y Convertible y Shares of such stock are called "convertible preferred

shares" (or "convertible preference

CONT
y The base value of the Sensex is 100 on April 1, 1979 and

the base year of BSE-SENSEX is 1978-79. At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.