Company shares are majorly the life of the ownership or management of a company, if you own the highest shares in a company, you are technically in charge of the company, and has the highest stake in decision making of a company., pub-4436339061114352, DIRECT, f08c47fec0942fa0

Shares are part of company securities, another category of company securities are debentures. debentures are credit borrowed by a company to pay back on interest, through a deed of debenture.

According to,a share is a single unit of ownership in a company or financial asset. it is an exchangeable piece of value of a company which fluctuates up or down , depending on several different factors.

its common knowledge that the following makes up a business, they are capital and labour.

in companies law, company divides its monetary worth into shares, companies relies on issuance of shares to raise capital . company also raises money or credit through debenture.

Shares are different from stocks, because while a stocks are bundle of shares, shares are units of stocks.

In Nigeria, shares can be classified as ORDINARY SHARES and PREFERENCE SHARES ,ordinary shares or equity shares are for common stock holders, while preference shares are for Preferred stock holders, in further illustration , Preference shares are category of shares that a company issues to a group of investors in preference to others , unlike other stockholders, “Preferred stock” are shares of companies stocks with dividends, that are usually paid out to shareholders before common stock/ share holders are paid.

In a situation a company enters bankruptcy, preferred stock holders are entitled to be paid out first.

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MINIMUM SHARE CAPITAL-Most businesses itemised under the corporate and Allied Matters Act 2020,have a minimum threshold share capital.

A minimum share capital is set out for businesses in some categories, for example shipping, bureau de change etc.


A company may increase its share capital by ordinary resolution passed by ,in a general meeting. the members of the company resolves to increase the share capital base of the company.

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