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

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 sentiment towards the stock market as […]

What is Forfeiture of Shares?

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 Directors make the calls. If the […]

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

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 shares with differential rights was introduced […]

Issue of shares at premium and at discount

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 face value. Issue of Shares at […]

What is Prospectus in share markets?

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 the subscription list. Many companies float […]