{"id":5634,"date":"2021-09-06T12:53:48","date_gmt":"2021-09-06T07:23:48","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=5634"},"modified":"2025-10-07T19:40:49","modified_gmt":"2025-10-07T14:10:49","slug":"features-of-shares","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/features-of-shares\/","title":{"rendered":"Features of Shares | Meaning, Types, and Characteristics of shares"},"content":{"rendered":"\n<h2 class=\"has-text-align-center wp-block-heading\"><strong>Features of Shares<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares-1024x576.jpg\" alt=\"Features of Shares\" class=\"wp-image-5644 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Features-of-Shares.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Definition of Shares<\/strong><\/h3>\n\n\n\n<p>The term <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/definition-of-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/definition-of-shares\/\" rel=\"noreferrer noopener\">share<\/a><\/strong> is defined b Section 2 (84) of the Companies Act 2013, \u2018Share means a share in the share capital of a company and includes stock\u2019.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/en.wikipedia.org\/wiki\/Share_(finance)\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.wikipedia.org\/wiki\/Share_(finance)\" rel=\"noreferrer noopener\">share<\/a> is a unit by which the share capital is divided. The total capital of company is divided into small parts and each part is called share and the value of each part\/unit is known as face value. A share is a small unit of capital of a company. It facilitates the public to subscribe to the capital in a smaller amount.<\/p>\n\n\n\n<p>A person can purchase any number of shares as he wishes. A person who purchases shares of a company is known as a shareholder or a member of that company.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/scholarsclasses.com\/blog\/public-deposits-meaning\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/public-deposits-meaning\/\" rel=\"noreferrer noopener\">Public Deposit <\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/gdr-meaning\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/gdr-meaning\/\" rel=\"noreferrer noopener\">Global Depository Receipt (GDR)<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/features-of-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/features-of-shares\/\" rel=\"noreferrer noopener\">Features of Shares<\/a><\/li><\/ul>\n\n\n\n<p>The amount of authorized capital, together with the number of shares in which it is divided, is stated in the Memorandum of Association but the classes of shares in which the company\u2019s capital is to be divided, along with their respective rights and obligations, are prescribed by the Articles of Association of the company. As per Section 86 of The Companies Act, a company can issue two types of shares <br>(1) <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-preference-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-preference-shares\/\" rel=\"noreferrer noopener\">Preference shares<\/a><\/strong>, and <br>(2) <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-equity-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-equity-shares\/\" rel=\"noreferrer noopener\">Equity shares<\/a><\/strong> (also called ordinary shares).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Features of Shares<\/strong>:<\/h3>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">1) Meaning:<\/span><\/strong> Share is the smallest unit in the total share capital of a company.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">2) Ownership:<\/span><\/strong> The owner of the share is called a shareholder. It shows the ownership of a shareholder in the company.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">3) Distinctive Number:<\/span><\/strong> Unless dematerialized, each share has a distinct number for identification. It is mentioned in the Share Certificate.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">4) Evidence of title:<\/span><\/strong> A share certificate is issued b a company under its common seal.  It is a document of title of ownership of shares. A share is not any visible thing. It is shown by share certificate or in the form of Demat share.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">5) Value of a Share:<\/span><\/strong> Each share has a value expressed in terms of money. <br>There may be :<br><strong>(a) Face value:<\/strong> This value is written on the share certificate and mentioned in the Memorandum of Association.<br><strong>(b) Issue price:<\/strong> It is the price at which company sells its shares.<br><strong>(c) Market Value:<\/strong> This value of share is determined by demand and supply forces in the share market.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">6) Rights:<\/span><\/strong> A share confers certain rights on its holder such as right to receive dividend, right to inspect statutory books, right to attend shareholders\u2019 meetings, and right to vote at such meetings, etc.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">7) Income:<\/span><\/strong> A shareholder is entitled to get a share in the net profit of the company. It is called dividend.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">8) Transferability:<\/span><\/strong> The shares of a public limited company are freely transferable in the manner provided in the Articles of Association.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">9) Property of Shareholder:<\/span><\/strong> Share is a movable property of a shareholder.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">10) Kinds of Shares: A company<\/span><\/strong> can issue two kinds of shares :<br><strong>(a) Equity shares. <br>(b) Preference shares.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":5644,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[2427],"class_list":["post-5634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-features-of-shares"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=5634"}],"version-history":[{"count":2,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5634\/revisions"}],"predecessor-version":[{"id":39304,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5634\/revisions\/39304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/5644"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=5634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=5634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=5634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}