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What are the types of shares

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Welcome to our wonderful website. So friends, today we are going to know in this article, some main types of shares. Which you must know.

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Let’s start today’s great article..
First of all we see that

● Why does the company sell shares?

Companies sell shares to increase their investment because without investment it is not easy for any one person to run a big company or make a small company big.

A lot of money is spent in all this and not everyone has such a huge amount, those people who have them run their company, but 99% of the people do not have that much money.

That’s why the company sells its shares, so that they can get money in exchange for the shares. And he could invest that money in making his company bigger.

Now let’s look at the second point,

● How shares are Formed :-

Those who own the company, they publicize their company to increase investment in their company and issue shares of their company by registering themselves in NSE (National Stock Exchange) or BSE (Bombay Stock Exchange). After which common people buy those shares and after that they earn profit by selling those shares in exchange. This is how shares are formed.

Types of Shares

Types of Shares :-

There are mainly three types of shares, including equity shares.

  1. Equity Share
  2. Preference Share
  3. DVR Share

● What is Equity Share :-

When a company listed on the stock exchange issues its shares, those shares are called ‘Equity Shares‘.

Compared to other shares, equity shares are trade the most because these shares are issued by almost all the companies.

Generally, people invest and trade on the highest equity shares in the stock exchange, for this reason people call them only ‘shares‘ instead of equity shares.

If you are also thinking of trading in the stock market, then you can comfortably trade in equity shares.

Preference Share

● What is Preference Share :-

After the equity share in the stock market, the name of the preference share plays a lot, there is not much difference between the preference share and the equity share. Because it is both, then the share is the same, but there are some things which make the preference share different from the equity share.

Let us see, what is it that makes Preference Share different from Equity Share.

As the Preference Shareholder can never vote in the meeting of the company. Because the preference share holder does not have this right.

And the Preference share holder will get the profit from the company in advance which he is going to get at the end of the year, thus Preference share is different from Equity.

Now let’s look at the next point,

What is DVR Share

● What is DVR Share :-

DVR Share Full Form is : Share With Differential Voting Rights.

DVR shares are different from equity and preference shares. This is different because the DVR shareholder gets benefits like equity shares but does not get voting rights like that.

It is not that the DVR shareholder cannot vote, the DVR holder can vote but his voting rights are assured. That where he will be given the right to vote, the same DVR shareholder will be able to vote.

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