How Corporate Firms Raise Capital: Shares, Stocks, and Debentures
What is a share
What are the types of shares
Whats a debenture
Types of Capital
What are the types of Debenture?
What is a Share?
| The capital needed is something like a pizza, and each pie is a share |
A Share is the unit capital of a business sold to the public for the purpose of raising funds. Those who buy the shares are called shareholders and their reward of buying the shares is DIVIDEND
Here’s a straightforward breakdown:
- A share is a unit of ownership in a corporation.
- Buying shares means you become a shareholder, which gives you certain rights, such as voting at shareholder meetings and potentially receiving dividends.
- The value of a share can change based on the company's performance and investor demand, affecting its price in the stock market.
- Owning shares means you have a stake in the company's success and can benefit from its growth and profitability.
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