BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Share. The term “share capital” refers to the amount of money the owners of a company have invested in the business as represented by common and/or preferred shares.

Detailed explanation-2: -Share capital is of two types namely, equity share capital and preference share capital. Equity share capital is generated by raising of funds from the investors and preference share capital is obtained by the issuance of preference shares.

Detailed explanation-3: -All shares that are not preferential shares are equity shares and are also known as ordinary shares. A person who holds equity shares has the right to vote in the company’s decisions. As an equity shareholder, you are entitled to receive a claim to any profits paid by the company in the form of dividends.

Detailed explanation-4: -A company limited by shares refers to a company which issues shares to the public. Such companies are called limited companies in India and public limited company (PLC) in the commonwealth countries and Great Britain. They are called ‘Inc’ in the USA.

Detailed explanation-5: -The capital a company raised by offering shares is known as equity share capital or share capital. It is the money that company owners and investors direct towards a company’s capital and use to develop or expand the operations of their venture.