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Buy Back : A Distinctive Path to Shareholder Prosperity Buy back is a corporate action in which a company buyback its shares or other securities from existing shareholders. Usually a company buy back its shares at a price higher than market price to give benefits to shareholders. This actions increases the value of shareholders in the market. For Understanding of the Concept of Buy Back, here's the link to the article: https://lnkd.in/gxeMdrvD #buyback #companiesact2013 #shareholders #investors #makeinindia #cs #companysecretaries #lawfirms

📈 A Comprehensive Guide to Company Shares 📈 Confused about company shares? Our latest blog provides an in-depth guide to help you understand the different types of shares and their implications for your business. 🔍 In this blog, you'll learn about: The different types of company shares How shares affect ownership and control The benefits and risks of issuing shares Key considerations for shareholders and business owners Whether you're an entrepreneur, investor, or business owner, this guide is essential for making informed decisions about company shares. https://lnkd.in/debXJw3W #1stChoiceIncorporations #CompanyShares #BusinessOwnership #Investment #Shareholders #BusinessGuidance #Entrepreneurship

Read a New Article on Buy Back of Securities under the Companies Act, 2013

Q. “Can any Company issue unlimited number of shares? ” A. There are some limitations. Let’s say a company, ABC Ltd, has a total of 23 lakh shares. On top of that, the management decides to create 23 lakh new shares. They say these new shares will be sold to investors to raise more money for the business. They can do so. They can create 23 lakh new shares and sell them. After this, the total shares of that company goes up to 46 lakh. This means that, in theory, the share price will reduce by half. Why? Because the company is still the same: the revenues and profits are the same. But the total shares are now double in number. So the earnings per share is reduced by half. Companies create new shares when they are raising money by selling a stake in a company. Usually, they raise money by creating a small number of new shares. This is done with the aim of not affecting the current share price too much. Before creating new shares, the company also needs approvals from the board and the existing shareholders. Also, a company cannot go on creating new shares on its own. It needs to get regulatory approvals.

I started a New 5 Days Series Naming “ The Commerce Thing “ ( Second Article ) Today I want to share about “ Equity “ This term is often used in finance to represent ownership in a company, typically referring to the value of shares issued. The Indian Companies Act 2013 recognises 7 types of companies based on size, no of members, control,liability, listing, intended business activity and country of origin. 1. OPC( one person company) 2. Private limited company 3. Public company 4. Sole proprietorship 5. Partnership 6. Limited liability partnership (LLP) 7. Section 8 company (NGO) Equity generally refers to Public company/ Public limited company. Beacause they are authorised to raise money from public for their business operations . Companies can issue three types of shares Preference shares, Equity shares and non-voting shares. A share, also known as stock or equity, is a unit of ownership in a company. When a person buys shares in a company, they become a shareholder and part owner of the company. 🎯Equity share holders are the owners of the company with high potential returns as well as risk tolerance. 🎯Preference share are for cautious investors who want a steady and consistent returns on their investment. 🎯Non-voting share are issued to family members of Directors or Board members to raise money without diluting control as they do not carry voting rights in general body meetings and other matters. The return given to shareholders is called’ Dividend’ . Let’s understand with the help of an example Company has Rs 10 lakh of Net Profit ( after deducting all expenses) and Prefernce shareholders has 10% returns ( which is fixed at the time of issue) will be given first. Rest profit goes to equity shareholders as per decision on how much to reinvest . So equity shares are either in maximum profit or loss , that’s why they are called as risk- takers as well. The amount a company pays out in dividends relative to its net income is called the dividend payout ratio. At the time of investment in shares, this is an important element to consider. #equityshares #preferenceshares #shares #publiclimitedcompany.

IPO Listings in India. #drhp #legal #capitalmarkets #stocks #fundraising #nse #bse #trading #stockmarket #privateequity #giftcity #ifsc #capitalmarket #sensex #qip #qips #equity

In many jurisdictions, treasury shares are shares reacquired by a company which, instead of being cancelled on their re-acquisition, are held by the company in its “treasury” or are dormant until reissue or resale. This approach allows flexibility, as treasury shares are exempt from shareholders’ pre-emptive rights, enabling companies to reissue them without first offering them to existing shareholders. However, under the South African Companies Act, 2008, reacquired shares must be canceled and revert to authorised share capital, which the company may later reissue (Section 35(5)). An exception to the rule against treasury shares is made by permitting a subsidiary to acquire and hold up to 10% in aggregate of the issued shares of any class of shares of its parent company (section 48(2)(b)). Since a company cannot hold an ownership interest in itself, section 48(2)(b)(ii) specifies that a subsidiary may not exercise any voting rights attached to shares it holds in its parent company. However, nothing is stated about dividend rights, nor are there restrictions on selling these shares. Treasury shares occupy a unique position: they are non-voting, do not count toward quorum requirements, and remain accessible for future transactions. In this way, they offer flexibility, reducing the administrative burden of canceling and reissuing shares. ______________________________ ✨ Our Company acts for corporate buyers, sellers, investors, private equity funds, and the like. Feel free to reach out to us if you would like to book a consultation. ✨✨ If you like reading these “One-Liners”, please click the 🔔 (on my profile) so you don’t miss any new posts and please let me know your comments and share with others.

Trustco to combine shares: TRUSTCO will be implementing a share consolidation, also known as a reverse stock split, to international investors that will combine its shares. According to a statement issued by Trustco on Wednesday, the move will align the company’s shares with its American Depositary Receipts (ADRs), which are used by United States investors. This change means shareholders will own fewer shares but each share will be worth more. “The board of Trustco has approved and recommended to shareholders for approval the consolidation of shares at a ratio of 20:1,” noted the statement. This means for every 20 shares owned, shareholders will now have one share at the same value. Trustco’s deputy chief executive Quinton Z van Rooyen said the alignment will strengthen its relationship with investors. “This share consolidation is another step in unlocking that potential. By taking these steps, we are positioning Trustco to not only meet the expectations of international markets but to thrive in them,” said van Rooyen. The post Trustco to combine shares appeared first on The Namibian.

A rights issue is a financial mechanism allowing existing shareholders to purchase additional shares at a discounted price, typically within a limited timeframe (usually 30 days). This approach helps companies raise capital while giving shareholders the option to buy more stock without obligation. Key notes: 👉Discounted Shares: Shares are offered below market value. 👉Types: Rights can be renounceable (transferable) or non-renounceable (non-transferable). 👉 Dilution: New shares can dilute existing shareholders' equity. Understanding rights issues can empower investors to make informed decisions! Share your thoughts below and follow me for more 😇 #Finance #Investing #FinancialFreedom #WealthBuilding #PassiveIncome #StockMarket #Entrepreneur #CryptoCommunity