Tag Archives | Shares

Difference between Stakeholders and Shareholders | Financial Accounting

This article will help you to learn about the differences between stakeholders and shareholders. Shareholders are definitely the important stakeholders of a company; nevertheless they are not the only group who are interested in the company’s activities, its financial performance, financial position and cash flows. Of course, the shareholders in addition would be interested to […]

How does Stock Exchange Functions?

The following article will guide you about how does stock exchange functions. The stock exchange is an organised and centralised market for the purchase and sale of industrial and financial securities of all descriptions, viz., Stocks, Shares, and Debentures etc. It is a market for transactions in old securities. Practically, it is a place where […]

Rights Issues: Reasons and Advantages | Shares

In this article we will discuss about:- 1. Reasons for a Rights Issue 2. Advantages of Rights Issue. If an existing company intends to raise additional funds, it can do so by borrowing or by issuing new shares. One of the most common methods for a public company to use is to offer existing shareholders […]

Disadvantages of Flotation | Shares

In this article we will discuss about the disadvantages and drawbacks of flotation. (a) There are considerable costs in flotation and listing. (b) It takes lot of management’s time, before and after flotation and listing. (c) The company must comply with the stringent stock exchange regulations. (d) It will be necessary to meet the regulatory […]

Equity Shares: Advantages and Disadvantages | Company

In this article we will discuss about the advantages and disadvantages of equity shares. An equity interest in a company may be said to represent a share of the company’s assets and a share of any profits earned on those assets after other claims have been met. The equity shareholders are the owners of the […]

Forfeiture and Reissue of Shares

In this article we will discuss about the Forfeiture and Reissue of Shares:- 1. Introduction to Forfeiture and Reissue of Shares 2. Journal Entries on Forfeiture (or Surrender) and Reissue of Shares 3. Solved Illustrations. Introduction to Forfeiture and Reissue of Shares: If a shareholder fails to pay allotment money or a call or a […]

Journal Entries on Issue of Shares

In this article we will discuss about the Journal Entries on Issue of Shares for Consideration Other than Cash. A company may issue shares for consideration other than cash. It may, for example, purchase some fixed assets for which it may make payment in the form of shares. Or it may take over a running […]

Issue of Shares by a Company

The following points highlight the five main steps for the issue of shares by a company. The steps are: 1. Issue of Prospectus 2. Use of Application Moneys 3. Pro Rata Allotment 4. Calls in Advance 5. Calls in Arrear 6. Balance Sheet. Step # 1. Issue of Prospectus: To collect capital from the public, […]

Buy-back of Shares (With Illustration) | Accounting

The below mentioned article provides a study note on the Buy-back of Shares:- 1. Conditions for Buy-back of Shares 2. Restrictions on Buy-back of Shares 3. Contents of Notice of Meeting 4. Time-limit 5. Sources 6. Picking Shares 7. Declaration of Solvency 8. Method of Fixation of Price 9. Deposit in an Escrow Account 10. […]

Valuation of Shares: Need and Methods (With Illustrations)

In this article we will discuss about the Need and Methods required for Valuation of Shares. Need for Valuation of Shares: In most cases, shares are quoted on the stock exchange; and for ordinary transactions in shares or debentures or Government securities, the price prevailing on the stock exchange may be taken as the proper […]

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