A company may, if so authorised by its Articles, convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination. So every 'stock' is a 'share' while every 'share' may not be a 'stock'. The method of conversion of shares into stock is given below: 1. To pass a [...]
After reading this article you will learn about the meaning and kinds of shares issued by a company. Meaning and Definition of Shares: A share is the interest of a shareholder in a definite portion of the capital. Section 2 (46) of the Act defines a share as, "A share in the share capital of a company and includes stock, [...]
After reading this article you will learn about:- 1. Meaning of Bonus Issue 2. Effects of Bonus Issue 3. Advantages 4. Disadvantages. Meaning of Bonus Issue: A company can pay bonus to its shareholders either in cash or in the form of shares. Many a times, a company is not in a position to pay bonus in cash inspite of [...]