{"id":9742,"date":"2023-01-17T16:30:34","date_gmt":"2023-01-17T11:00:34","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=9742"},"modified":"2023-01-24T21:10:59","modified_gmt":"2023-01-24T15:40:59","slug":"what-are-shares-meaning-and-how-they-compare-to-stocks","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/","title":{"rendered":"What Are Shares? Meaning and How They Compare to Stocks"},"content":{"rendered":"\n<p>Shares, also called equity, represent part-ownership in a company. They are increasingly gaining popularity among investors as they explore the <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a> market as an avenue to grow wealth.<\/p>\n\n\n\n<p>Now with quick access to the internet and online brokerage services, you can invest in any share in just a few minutes! Read further to understand the definition of shares, types, features and more.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#What-are-shares\" title=\"What are shares?\">What are shares?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Features-of-shares\" title=\"Features of shares\">Features of shares<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Types-of-shares\" title=\"Types of shares\">Types of shares<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Equity-shares\" title=\"Equity shares\">Equity shares<\/a><ul class=\"ez-toc-list-level-4\"><li class=\"ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Features-of-equity-shares\" title=\"Features of equity shares\">Features of equity shares<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Types-of-equity-shares\" title=\"Types of equity shares\">Types of equity shares<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Classification-based-on-share-capital\" title=\"Classification based on share capital\">Classification based on share capital<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Classification-based-on-returns\" title=\"Classification based on returns\">Classification based on returns<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Other-types-of-equity-shares\" title=\"Other types of equity shares\">Other types of equity shares<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Preference-shares\" title=\"Preference shares\">Preference shares<\/a><ul class=\"ez-toc-list-level-4\"><li class=\"ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Features-of-preference-shares\" title=\"Features of preference shares\">Features of preference shares<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-4\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Types-of-preference-shares\" title=\"Types of preference shares\">Types of preference shares<\/a><\/li><\/ul><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Why-does-a-company-issue-shares\" title=\"Why does a company issue shares?\">Why does a company issue shares?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/glossary\/what-are-shares-meaning-and-how-they-compare-to-stocks\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-are-shares\"><\/span><strong>What are shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.thestreet.com\/.image\/t_share\/MTY5NDYzMzA2MzI1NTk5NzA3\/stock-vs-shares.png\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.thestreet.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">TheStreet<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Shares are per unit <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> of a company. When a company needs funds for growth or expansion, it can offer shares to investors.&nbsp;<\/p>\n\n\n\n<p>These shares represent part-ownership in a company. Whenever you buy shares of a company, you become a shareholder of the company. Here, you are entitled to dividends and other benefits.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Shares denote part ownership in a company<\/li>\n\n\n\n<li>Equity shares and preference shares are the two main types of shares that companies issue<\/li>\n\n\n\n<li>Both equity and preference shares are further sub-divided into different types<\/li>\n\n\n\n<li>Companies issue shares to raise funds for their growth and development<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Features-of-shares\"><\/span><strong>Features of <\/strong><strong>shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the salient features of shares are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>The value of shares is determined based on the demand and supply in the market. It constantly fluctuates<\/li>\n\n\n\n<li>Few shares may allot you voting rights<\/li>\n\n\n\n<li>Shares are perpetual in nature, i.e., they do not have a specific maturity date&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Types-of-shares\"><\/span><strong>Types of shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/ondemandint.com\/wp-content\/uploads\/2022\/03\/Types-of-Shares-1024x697.jpg\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/ondemandint.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Odint Consulting<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Broadly, shares can be divided into two main categories: equity and preference. Let\u2019s read each type in detail.&nbsp;&nbsp;<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Equity-shares\"><\/span><strong>Equity shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Equity shares are the most common types of shares that are offered by companies. Also called ordinary shares, equity shares form the bulk of the share capital of a company.&nbsp;<\/p>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Features-of-equity-shares\"><\/span><strong>Features of equity shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Common features of equity shares are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>Equity shares are issued at face value, but they trade at market value.&nbsp;<\/li>\n\n\n\n<li>A company issues equity shares in the primary market through an IPO (Initial Public Offering). After the shares are subscribed, and the company is listed, the shares trade in the secondary market, which is the stock market.<\/li>\n\n\n\n<li>Equity shares carry a high level of <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> risk.<\/li>\n\n\n\n<li>Dividend income is a possibility if the company earns profits in a financial year and distributes the same among its shareholders.<\/li>\n<\/ul>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Types-of-equity-shares\"><\/span><strong>Types of equity shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Equity shares are subdivided into various types based on broad parameters. Let\u2019s understand each of them.&nbsp;<\/p>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Classification-based-on-share-capital\"><\/span><strong>Classification based on share capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Depending on the share capital that they represent, equity shares can be divided into the following types:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Types of equity shares<\/strong><\/td><td><strong>Meaning&nbsp;<\/strong><\/td><\/tr><tr><td>Authorised share capital<\/td><td>The maximum capital a company can raise by issuing equity shares is called authorised share capital.&nbsp;<\/td><\/tr><tr><td>Issued share capital<\/td><td>Issued share capital is the capital raised by issuing a specific number of equity shares to the public for investment.<\/td><\/tr><tr><td>Subscribed share capital<\/td><td>Subscribed share capital is the part of the capital for which the company has received subscriptions from investors. It is a part of the issued share capital.<\/td><\/tr><tr><td>Paid-up share capital&nbsp;<\/td><td>The portion of the capital for which the investors have invested is called the paid-up share capital. This is a part of the subscribed share capital.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Classification-based-on-returns\"><\/span><strong>Classification based on returns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Depending on the type of returns, equity shares can be sub-divided into the following types:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Types of equity shares<\/strong><\/td><td><strong>Meaning&nbsp;<\/strong><\/td><\/tr><tr><td>Dividend shares<\/td><td>Shares that give regular dividends are called dividend shares.<\/td><\/tr><tr><td>Growth shares<\/td><td>If the company reinvests the profits and does not declare dividends, it can use the same for growth. This growth leads to an increase in the market value of shares.&nbsp; Such shares are called growth shares.<\/td><\/tr><tr><td>Value shares<\/td><td>Value shares are those that trade on the market at a discount in comparison to their intrinsic value.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You can also use the <a href=\"https:\/\/www.tickertape.in\/blog\/introducing-scorecard-stock-analysis-got-quicker-and-better-with-quantitative-insights\/\">Scorecard<\/a> feature on <a href=\"https:\/\/www.tickertape.in\/stocks\/aditya-birla-capital-ADTB?utm_source=glossary&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape<\/a> to gain more information about the stock.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"532\" height=\"888\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-4.png\" alt=\"\" class=\"wp-image-9743\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-4.png 532w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-4-180x300.png 180w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/image-4-180x300@2x.png 360w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure><\/div>\n\n\n<h4><span class=\"ez-toc-section\" id=\"Other-types-of-equity-shares\"><\/span><strong>Other types of equity shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Types of equity shares<\/strong><\/td><td><strong>Meaning&nbsp;<\/strong><\/td><\/tr><tr><td>Bonus shares<\/td><td>Shares issued to existing shareholders without a cost are called bonus shares.<\/td><\/tr><tr><td>Rights shares<\/td><td>Existing shareholders get the privilege to subscribe to the additional issue of shares through a rights issue. You can buy such shares at a preferential rate within a specified period.<\/td><\/tr><tr><td>Sweat equity<\/td><td>Sweat equity shares are issued to company employees to compensate them for their hard work and efforts.<\/td><\/tr><tr><td>ESOPs<\/td><td>Equity Stock Ownership Plans (ESOPs) are equity shares issued by companies as a part of employee compensation. ESOPs allow employees to buy the company\u2019s shares at reduced rates, hold them through the vesting period and then sell them at a higher rate for earning returns.<\/td><\/tr><tr><td>Voting shares<\/td><td>Shares that earn shareholders the right to vote are called voting shares.<\/td><\/tr><tr><td>Non-voting shares<\/td><td>Shares that do not have voting rights are called non-voting shares.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Preference-shares\"><\/span><strong>Preference <\/strong><strong>shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Preference shares are also part of the share capital of a company. However, holders of such shares get preference in dividend payments and also at the time of <a href=\"https:\/\/www.tickertape.in\/glossary\/liquidation-meaning-process-types-and-examples\/\">liquidation<\/a>, hence the name.<\/p>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Features-of-preference-shares\"><\/span><strong>Features of preference <\/strong><strong>shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Some of the salient features of preference shares are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>Preference shares are not commonly available on the stock exchange for trading<\/li>\n\n\n\n<li>In some cases, preference shares may promise fixed dividends<\/li>\n\n\n\n<li>Preference shares generally don\u2019t allow voting rights<\/li>\n\n\n\n<li>At the time of liquidation, preference shareholders are given first preference&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4><span class=\"ez-toc-section\" id=\"Types-of-preference-shares\"><\/span><strong>Types of preference <\/strong><strong>shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Here is a look at some of the different types of preference shares issued by companies \u2013<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Types of preference <\/strong><strong>shares<\/strong><\/td><td><strong>Meaning&nbsp;<\/strong><\/td><\/tr><tr><td>Cumulative and non-cumulative preference shares<\/td><td>If there is no dividend declaration in a year, the dividend payment is carried forward to the next year in cumulative preference shares.&nbsp;Non-cumulative shares, however, do not carry forward dividends.<\/td><\/tr><tr><td>Participating and non-participating preference shares<\/td><td>Participating shares are entitled to surplus profits over and above the dividend declared.&nbsp;Non-participating shares do not receive any surplus profit.<\/td><\/tr><tr><td>Convertible and non-convertible preference shares<\/td><td>Shares that can be converted to equity shares (after specified conditions are met) are called convertible preference shares. Non-convertible shares cannot be converted to equity shares.<\/td><\/tr><tr><td>Redeemable and irredeemable preference shares<\/td><td>Redeemable shares have a fixed tenure, after which the company buys back such shares at a predefined price. Non-redeemable shares continue in perpetuity.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Why-does-a-company-issue-shares\"><\/span><strong>Why does a company issue <\/strong><strong>shares<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies issue shares primarily to raise capital for their operations, growth, and expansion. Companies can also issue equity shares for the following reasons \u2013<\/p>\n\n\n\n<ul>\n<li>To raise capital for various operations<\/li>\n\n\n\n<li>To get listed in the share market<\/li>\n\n\n\n<li>To gain visibility<\/li>\n\n\n\n<li>To expand their market reach&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Shares denote ownership in a company. The most common types of shares are equity and preference, which are further subdivided into many types based on various parameters such as returns, share capital, etc. Remember, equity investments are highly risky. Consult your advisor before investing in shares.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-d384b11c uagb-faq-icon-row-reverse uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-5804d0b7\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are shares and stock?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Both the term, shares and stock, are used interchangeably to refer to the equity ownership in a company. Technically, shares are units of stocks. Both represent ownership in a company. By investing, you get to participate in the profits that companies earn.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c2b6b153\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are the types of shares?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Equity and preference shares are the two main types of shares. Further, both equity and preference shares are classified into different types based on various parameters like share capital, returns, etc.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-96f3d616\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Which share is best to buy?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Each type of share has its merits and demerits. It is wise to assess your investment strategy, financial goals, and risk appetite before investing in any stock.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Looking to invest in shares? Before you do so, read what shares are, their features and different types. <\/p>\n","protected":false},"author":90,"featured_media":9871,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/01\/2-1-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":""},"uagb_comment_info":2,"uagb_excerpt":"Looking to invest in shares? Before you do so, read what shares are, their features and different types.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9742"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=9742"}],"version-history":[{"count":12,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9742\/revisions"}],"predecessor-version":[{"id":9880,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9742\/revisions\/9880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/9871"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=9742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=9742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=9742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}