Shares and debenture

An Introduction

SHARES AND

DEBENTURES

Presented By:-Kirti GuptaUID- 16MBA7028

IntroductionMeaning of Shares and Share CapitalTypes of SharesAdvantages and Disadvantages of SharesIssue of SharesMeaning of DebenturesTypes of DebentureAdvantages and disadvantages of DebentureDifference Between Shares and Debenture

CONTANTS

Companies (Private and Public) need capital either to increase their productivity or to

increase their market reach or to diversify or to purchase latest modern equipment's. Companies go in for IPO and if they have

already gone for IPO then they go for FPO. The only thing they do in either IPO or FPO is to sell the shares or debentures to investors

(the term investor here represents retail investors, financial institutions, government,

high net worth individuals, banks etc.). Whether they issue shares or debentures

totally depends upon the concerned company.

INTRODUCTION

WHAT IS IPO?

An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO.IPOs are often issued by smaller, younger companies seeking capital to expand

FPO (Follow on Public Offer) is a process by which a company, which is already

listed on an exchange, issues new shares to the investors or the existing shareholders,

usually the promoters. FPO is used by companies to diversify their equity base.

WHAT IS FPO?

Follow on Public Offer

SHARE CAPITALThe part of the capital of a company that comes from the issue of shares.

Authorized, registered or nominal capital

Issued capital

Subscribed capital

Called up Capital

Paid up Capital

Reserve Capital

SHARES

One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits.  It is divided into a 'number of indivisible units of a fixed amount.

The holders of these shares are the real owners of the company. They have a voting right in the meetings of holders of the company. They have a control over the working of the company. Equity share holders are paid dividend after paying it to the preference shareholders

TYPES OF SHARES

Equity Shares Preference Shares

Preference shares, more commonly referred to as preferred stock, are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, the shareholders with preferred stock are entitled to be paid from company assets first.

TYPES OF EQUITY SHARES

Rights Share: These are the shares issued to the existing shareholders of a company. Such kind of shares is issued to protect the ownership rights of the investors.

Bonus share: These are the type of shares given by the company to its shareholders as a dividend.

Sweat Equity Share: These shares are issued to exceptional employees or directors of the company for their exceptional job in terms of providing know-how or intellectual property rights to the company.

TYPES OF PREFERENCE SHARES

DIV

IDEN

D

• Cumulative Preference Share

• Non Cumulative Preference Shares

PAR

TIC

IPAT

ION

IN

PR

OFI

TS

• Participating Preference share

• Non participating Preference shares

RED

EMPT

ION • Redeem

able Preference share

• Non Redeemable Preference Share

• ConvertablePreference share

• Non Convertible Preference Share

CO

NV

ERTA

BIL

ITY

ADVANTAGES AND DISADVANTAGES OF EQUITY SHARES

ADVANTAGES AND DISADVANTAGE OF PREFERENCE SHARES

DIFFERENCE BETWEEN EQUITY AND PREFERENCE

SHARES

ISSUING SHARES

Call on Shares

Allotment of Shares

Application of Shares

Issuing Prospectus AT PARAT PREMIMUM AT DISCOUNT

A debenture is a medium to long-term

debt instrument used by large companies to borrow

money, at a fixed rate of interest.  A debenture is thus like a certificate of loan or a

loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the

money raised by the debentures becomes a part of

the company's capital structure, it does not

become share capital .

DEBENTURE

TYPES OF DEBENTURE

ADVANTAGES AND DISADVANTAGES OF DEBENTURE

DIFFERENCE BETWEEN SHARES AND DEBENTURES

ANY QUESTION ?

THANK YOU..