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Word Used in Capital Market

Download Definitions of Every Word Used in Stock Market<br>http://www.managementparadise.com/forums/stock-markets-tips-gyan/22083-definations-every-word-used-stock-market-known-must-read.html

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Word Used in Capital Market

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  1. Word Used in Capital Market http://www.managementparadise.com/forums/stock-markets-tips-gyan/22083-definations-every-word-used-stock-market-known-must-read.html

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  3. BASIC CAPITALMARKET INSTRUMENTS • Stock or share An ordinary share represents the form of fractional ownership of a company in which a shareholder, as a fractional owner, undertakes maximum entrepreneurial risk associated with the business venture... If the business fails to succeed, the claim of the ordinary shareholder on the residual amount left comes last after all other stakeholders, such as employees, creditors, lenders, government, preference shareholders, etc. www.managementparadise.com

  4. Preference share A preference share means a share, which carries a right for a dividend of a fixed amount, or an amount calculated at a fixed rate, before dividend is distributed to equity shareholders. However, this right is not like any other debt obligation. This is because if a company is not making profit it is not liable to pay dividend to preference shareholders, but the company is required to pay interest to its other creditors. Usually dividend payable on preference shares if not paid, is accumulated and paid in subsequent years. Preference shares are also redeemed, in the event of winding up of a company to the extent of principle value and unpaid dividend before making any payments to equity shareholders. www.managementparadise.com

  5. Cumulative Convertible Preference Share (CCP) A Cumulative Convertible Preference share has two distinct features mainly the dividend is accumulated if not paid in a year and the Preference share is convertible into equity shares as per the terms of the issue of Preference shares. Debenture A debenture represents the smallest unit of public lending to a company. A debenture holder receives a fixed stream of interest, unlike the uncertain stream of dividends that a shareholder receives. Payment of interest is a legal obligation on the part of the company. Also, usually a debenture is required to be secured against the assets of a company. www.managementparadise.com

  6. Download Definitions of Every Word Used in Stock Market http://www.managementparadise.com/forums/stock-markets-tips-gyan/22083-definations-every-word-used-stock-market-known-must-read.html www.managementparadise.com

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