Shares are the financial instruments by which a company raise funds
from general public by sharing the ownership of the company. The
company issues IPO (Initial Public Offer) to invite the general public
to buy shares of it. The person who purchased the shares is called shareholder of the company. Each shareholder is the owner of the company in respect of investment
made by him. Company use this collected money for production process or
to achieve the targets,goals, mission made by the company.
Basically there are two types of shares which a company can launch in primary market, 1: Preference shares 2: Equity shares. Preference shareholders have preference over the equity shareholders while distribution of profit, and equity shareholders have equal distribution of profit.
from general public by sharing the ownership of the company. The
company issues IPO (Initial Public Offer) to invite the general public
to buy shares of it. The person who purchased the shares is called shareholder of the company. Each shareholder is the owner of the company in respect of investment
made by him. Company use this collected money for production process or
to achieve the targets,goals, mission made by the company.
Basically there are two types of shares which a company can launch in primary market, 1: Preference shares 2: Equity shares. Preference shareholders have preference over the equity shareholders while distribution of profit, and equity shareholders have equal distribution of profit.