Sunday, September 11, 2016

what are shares and corporations what is the contribution of India

One of the  four major divisions of  Indian population  from ancient times was the  businessman .SrEshTi or SeTTI  which in northern hindi morphed in to S'ET.
 usually theses people depended on family and  friends or their own accumulated wealth to  buy goods and sell them for a profit;
 when  they  did not have  enough money they went to a bigger sET and  borrowed money to run  their business. This loan was charged an interest  ( simple/ maamulu vaDDI, compounded ,chakra vaDDi)
this is  called vaDDi in south india and mitti in North.
 there were partnerships in business from  a very long time  but the  idea  of  a  bunch of people  coming together  and  pooling their money  and keeping  a few among themselves  in charge of day to day affairs  and  just having a  part owner ship  uniquely started  with  East India company .

I do not know if such a thing existed in some form in ancient Inda.

hunDi;

hundi is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. The Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order."[1] The operation of the Hundi system has many parallels with the Hawala system also widely used in Africa, India and the Middle East

Hawala  has become  a dirty word recently but  this is a system  which was used by the  Indian merchants for  number of decades susccessfully.

Businesses of course, have been around for a while. The oldest continuously surviving business, until recently, was Kongo Gumi, a Japanese temple construction business founded in 584 AD that finally closed its doors in 2009. Guilds and banks have existed since the 16th century. Trading merchants, who raised capital to fund individual ships or voyages, often with some royal patronage, were also not a new phenomenon.  What was new was the idea of a publicly traded joint-stock corporation, an entity with rights similar to those of states and individuals, with limited liability and significant autonomy (even in its earliest days, when corporations were formed for defined periods of time by royal charter).
one of the  four major divisions  of  Indian population  from  ancient times  was the  business man   .SrEshTi or SeTTI   which in  northern hindi  morphed in to  S'ET 

 Difference between profit and  equity



Best Answer:  Profit is income, less the cost of producing the income.
Equity is assets minus liabilities. This is the value of what the owner actually owns.
Profit increases equity. Additional investment also increases equity.
STEVEN F ·

Equity is your actual worth in something. So if you have a house that has a value of $200,000, but your mortgage is $100k, then your equity in the house will also be $100k.
If you bought the house at $150k, and it is now $200k, then you have made $50k profit.

Atlantis


Equity is ownership. For example, if you put $20,000 down on a $100,000 business, you have 20% equity. Profit is money made after expenses are taken out of gross sales

.Andrew

share  stock
common stock preferred stock

one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits.


What are 'Preference Shares'

Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, the shareholders with preferred stock are entitled to be paid from company assets first. Most preference shares have a fixed dividend, while common stocks generally do not. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.

BREAKING DOWN 'Preference Shares'

Types of Preference Shares

There are four types of preference shares:
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Convertible preferred stock includes an option that allows shareholders to convert their preferred shares into a set number of common shares, generally any time after a pre-established date. Under normal circumstances, convertible preferred shares are exchanged in this way at the shareholder's request. However, a company may have a provision on such shares that allows the shareholders or the issuer to force the issue. How valuable convertible common stocks are is based, ultimately, on how well the common stock performs.

Significance to Investors

Preference shares are an optimal alternative for risk-averse equity investors. Preference shares are typically less volatile than common shares and offer investors a steadier flow of dividends. Also, preference shares are usually callable; the issuer of the shares can redeem them at any time, providing investors with more options than common shares.


Read more: Preference Shares Definition | Investopedia http://www.investopedia.com/terms/p/preference-shares.asp#ixzz4JVmAPMdJ

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