Types of Shares in a Company

Shares are a form of ownership in a company. A share gives its owner an ownership right over the assets, profits, and sometimes even the voting rights of a company. According to the companies Act, “share” means share in the share capital of a company and includes stock except where a distinct between stock and shares is expressed or implied.

Understanding shares is key to knowing how businesses grow, and how one can benefit from such business. Shares also known as stock or equity, represent a stake of ownership in a company and entitles a shareholder to a portion of profits.