Stock Exchange II

Commerce SSS3 First Term

WEEK  8

Stock Exchange II

Performance Objectives

The student should be able to:

     1. Explain shares and list types of shares.

     2. State methods of raising funds.

Content

Stock Exchange Securities

Securities are investments traded in the stock exchange in order to yield income e.g. shares, stocks gilt-edged, bond and debentures.

Types of Securities

1. Shares: An individual portion of the company’s capital owned by shareholders. A unit of capital measured by a sum of money. It also represents a mechanism by which shareholders of a company can have limited liability,

2. Stock: Bundle of shares of the mass of capital which can be transferred in fractional amount.

3. Debentures…