This document provides information about group members, types of shares, share capital, and procedures related to issuing and trading shares. It lists the group members and defines different types of shares including equity shares, preference shares, redeemable/irredeemable and convertible/non-convertible preference shares. It also describes share capital components like authorized, issued, subscribed, called-up and paid-up capital. Furthermore, it outlines procedures for issuing shares, buying and selling shares on the stock exchange, and redemption and forfeiture of shares.

2. GROUP MEMBERS
DHRUVA
KRISHNA PRAMOD
KARTHIC
NITESH B
RAJESH G
SATHVIK H.P

3. SHARES
A share has been defined by the
Indian Companies Act, under
sec.2(46) as “A share is the share
in the Capital of the
Company”.

5. SHARE CAPITAL
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(a) Authorized Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Called – up Capital
(e) Paid-up Capital

6. TYPES OF SHARES
1.EQUITY SHARESEquity shares means that part of the
share capital which is not a Preference share
capital. It means all such shares which are
not Preference shares. Equity shares are also
called as Ordinary Shares.

7. TYPES OF SHARES
2.PREFERENCE SHARESPreference shares are those shares which
fulfill both the following two conditions:
(i) They carry preferential share right in
respect of dividend at a fixed rate.
(ii) They also carry preferential right in regard
to payment of capital on winding up of the
company

8. TYPES OF PREFERENCE SHARES
• Redeemable & Irredeemable
• Convertible & Non Convertable
• Cumulative and Non – Cumulative

9. • Deferred shares
• Bonus shares
Conditions of issuing bonus shares
>sufficient amount of undistributed profit
>provision in the articles
>suitable resoultion
>share holders approval
>fully paid up shares

10. PROCEDURE FOR ISSUE OF SHARES
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Issue of Prospectus
Application of Shares
Allotment of Shares
Calls on Shares
Calls–in–Arrears
Calls–in–Advance

11. ISSUE OF SHARES
• ISSUE OF SHARES AT A PREMIUM
• ISSUE OF SHARES AT A DISCOUNT
• ISSUE OF SHARES AT A PAR

12. Accounting
entries

13. BUYING AND SELLING OF SHARES
• How can a person buy or sell shares on the
stock exchange?
• Direct
• Through brokers

14. PROCEDURE OF BUYING AND SELLING OF SHARES
Buying:• Place order
• Quantity to be traded
• trading
• After trading
Selling:• Quoting selling value
• Quantity to be sold
• Selling
• After selling

16. STOCK EXCHANGE

17. STOCK EXCHANGE
Stock Exchange is an organized
market for the purchase and sale of
industrial and financial security. It is
convenient place where trading in
securities is conducted in systematic
manner i.e. as per certain rules and
regulations

18. STOCK EXCHANGE

19. Role of stock exchanges
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Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Creating investment opportunities for small
investors
6. Government capital-raising for development
projects
7. Barometer of the economy
8. Facilitates bank lending

20. REDEMPTION OF SHARES
• Under Companies Act 2006, a company can
redeem shares which are issued as
redeemable shares by repaying the
shareholder, whereupon the shares are
cancelled.
• The redemption of any registered shares
must be notified to the registrar within one
month of redemption.

21. FORFEITURE OF SHARES
• Share forfeiture is the process by which the
directors of a company cancel the power of
shareholder if he does not pay his call money
when the company demands for it.
• Company will give 14 days notice, after 14
days if shareholder did not pay then company
will forfeit his shares and cut off his name
from the register of shareholder.

22. THANK YOU