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Introduction to shareholder equity
Do you have any idea regarding the day to day activity of a public limited company? The fund through which a company functions smoothly does not belong to one person only. It is the fund invested by many people other than the founder of the company. They purchase shares of the company. The shares may be classified broadly in two types namely preference share and equity shares. Confused, to get clearer picture of the scenario, refer to shareholder equity homework help.
It is evident from the fact that since there are more than one type of shareholders in an organization, there has to be some difference between them. The basic difference between them is that the preference shareholder get dividend every year at a fixed rate, whereas the equity shareholder get dividend at a higher rate but not every year. There are two main source from which you get shareholder equity.
One is the amount initially invested and other investment made after the initial investment, other source is the earning retained in the company over a period of time through its continuous operation. Since it is complicated for those learning this subject for first time, it is advisable to refer to shareholder equity assignment help.
The question that may strike your mind is that who regulates these funds internally and externally. The answer is that there are many rules and regulations that are made by authorized authority which is required to be abided by all depending on the category under which they fall. On the other hand, there are internal and external auditors which keep a track on these companies personally.
Now that you have got basic ideas regarding the source of fund within a public limited company, it is expected that you want to know more about it in detail. Therefore register yourself to My Homework help as soon as possible to get all answers to your queries.
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