CHAPTER 24
Concept of Shares
24.1 SHARES
Shares are indivisible unit of capital, clearly expressing the contractual relationship between the company and the shareholder. The denominated value of a share is its face value: the total capital of a company is divided into a number of shares. A person purchasing the share of a company is known as a shareholder or a stockholder.
The process of purchasing and selling shares often involves going through a stockbroker as a middle man.
For example, if a company is interested to raise the capital amount through the external source say from the public. Suppose the amount to be raised is 
200,00,000. The ...
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