Share Markets

What are the factors that influence the price of a stock ?

May 5, 2015

Factors that influence the price of a stock can be stock specific or market specific. The stock-specific factor is related to people’s expectations about the company, its future earnings capacity, financial health and management, level of technology and marketing skills. The market specific factor is influenced by the investor’s...

What is Forfeiture of Shares?

May 5, 2015

When shares are allotted to an applicant, it becomes a contract between the shareholder & the company. The shareholder is bound to contribute to the capital and the premium if any of the company to the extent of the shares he has agreed to take as & when the...

Voting Rights & Differential Voting Rights (DVR) in Equity Shares

May 5, 2015

The owners of equity shares have the voting rights in the annual general meetings of the company. Traditionally, voting right was like universal suffrage such as ownership of one share conferred one vote.  Voting rights of a person in a company were equal to shares owned.  However, concept of...

Issue of shares at premium and at discount

May 5, 2015

A limited company may issue the shares on following different terms. Issue of Shares for Consideration other than cash or for cash or on capitalization of reserves. Issue of Shares at par i.e. at face value or at nominal value. Issue of Shares at Premium i.e. at more than...

What is Prospectus in share markets?

May 5, 2015

Whenever shares are to be issued to the public, a company must issue a prospectus. The Prospectus contains relevant information like names of directors, terms of issue, etc. It also states the opening date of subscription list, amount payable on application, on allotment & the earliest closing date of...