Instruments of business finance – Meaning and types of shares and debentures
Economics SSS 1 Third Term
WEEK 10
Instruments of business finance – Meaning and types of shares and debentures
Performance Objectives
Student should be able to:
- Identify and explain the instruments of business finance.
Content
Meaning and types of shares, debentures and other securities
The Definition of a Share
The definition of a share includes the capital or stock of a company. Each business has a share capital requirement. A share is a single unit within the entire capital of the company. A share is also a type of security. It is often measured by its liability and interest. Members that own shares of a company are referred to as shareholders. They are investors that have invested funds into the business. In return, they will receive dividends on the profits of the business.
The Characteristics of a Share
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