abhishreshthaa
Abhijeet S
INDUSTRIAL SECURITIES:
Ordinary shares:
ordinary shares are ownership securities which have certain advantages in favour of the issuing companies and investors, depending on their attitude to risk-taking. Investment in this financial instrument is permanent but not illiquid. Investors can turn their shareholdings into cash fairly quickly due to the existence of a fairly active secondary market.
As the investor bears a high risk, he can participate in the earnings and wealth of the company without limit. Ordinary shares are expected to be a hedge against inflation.
It is advantages to the company because divided payments on ordinary share are not mandatory and there is no need to refinance the capital raised through the issue of ordinary shares. The face value of ordinary shares in India varies from Rs. 1 to Rs. 100 but most common and popular denomination of share is Rs. 10.
Ordinary shares:
ordinary shares are ownership securities which have certain advantages in favour of the issuing companies and investors, depending on their attitude to risk-taking. Investment in this financial instrument is permanent but not illiquid. Investors can turn their shareholdings into cash fairly quickly due to the existence of a fairly active secondary market.
As the investor bears a high risk, he can participate in the earnings and wealth of the company without limit. Ordinary shares are expected to be a hedge against inflation.
It is advantages to the company because divided payments on ordinary share are not mandatory and there is no need to refinance the capital raised through the issue of ordinary shares. The face value of ordinary shares in India varies from Rs. 1 to Rs. 100 but most common and popular denomination of share is Rs. 10.