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Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.
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Can equity shares be converted in to preference shares?
i want 2 convert the equity shares of my cmpany into preference shares
Difference between preference share and equity share?
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
What is potential equity shares?
potential equity shares are those 1. whose resources/considerations has been received and 2. whose resources have been reinvested in business. examples of potential shares are convertible preference shares, convertible debentures, employees stock options and share warrant.
What is preference share?
Preference shares are shares whose dividends are paid out first before ordinary shares dividends. They so called (preference shares) because they have 'preference' over ordinary shares for payment of dividends.
What are the different types of equity share capital?
Types of shares : Shares in the company may be similar i.e they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law :-1.Equity shares means that part of the share capital of the company which are not preference shares.2.Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.a. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend.b. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital.In Companies, the words 'Capital' and 'Share Capital' are used interchangeably. The raising of capital by issuing the shares is known as Share Capital. Share Capital is a permanent liability of a company. Memorandum of Association must contain all the features of a company's share capital i.e. amount, its division into shares etc.Types of Share Capital:- Authorised, Issued, Subscribed, etc.Detailed meaning of all here: http://financenmoney.in/what-is-share-capital/
Can equity shares be converted in to preference shares?
i want 2 convert the equity shares of my cmpany into preference shares
What is preference shares?
Lets understand meaning of Preference Share in Layman language. As name suggest preference shares are those kind of shares which has preference in payment of dividend, and price of shares over equity shares. If company earn net profit, then first return to preference shareholders are given at first, and then to equity shareholders.
What is compulsorily convertible preference shares?
it is a preference shares which willbe converted compulsory into equity shares after a stipulated time
What are convertible and non convertible preference shares?
in case of non convertible preference shares, the holders are not given the right to convert their shares into equity shares.
Four components of capital structure?
the components of capital structure(CS) includes: 1. CS with equity sahres only. 2. CS with equity and preference shares. 3. CS with equity and debentures. 4. CS with equity shares, preference shares and debentures.
What is the difference between return on total equity and return on common equity?
Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.
Difference between preference share and equity share?
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
What are the sources of capital of joint stock company?
different types of shares..equity,,preference
What are three other names for shares?
Ordinary and preference shares debentures securities also things like equity stock etc.
Similarities between ordinary shares and preference shares?
1 - Both are part of share capital of business 2 - Both have the voting powers 3 - Both are equity based financing tools.
What is procedure of convert preference share into equity share?
first check the articles of association (AOA) of the company if they allow such conversion or at least issue of preference shares with conversion option. secondly check if the shares were originally issued with conversion option, if yes, pass a board resolution and issue new equity shares. if no, then first amend AOA to allow such conversion, then vary the members rights u/s 106-107 of the companies act, then pass a shareholders resolution for issue of equity share holders u/s 81(1A) and of preference share holders permitting issue of equity shares.
What is potential equity shares?
potential equity shares are those 1. whose resources/considerations has been received and 2. whose resources have been reinvested in business. examples of potential shares are convertible preference shares, convertible debentures, employees stock options and share warrant.
