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Showing posts with the label transfer of shares and transmission of shares

All you need to know about the Transfer and Transmission of Shares

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Stakeholders, including executives and sometimes employees, can own shares in a company. Sometimes, they receive shares as part of a reward program, while they purchase them other times. Shares hold more value than anything else since it gives a sense of ownership. Let’s say a company purchases 100 shares from the market. It has six shareholders. Five received 16 shares each, but the sixth person became eligible for 20 shares. So, considering the shares and divided policies 101, we can say that the shareholder with 20% ownership of the company has more rights than others. Shares are a type of asset that one can liquify, foreclose on, prematurely invest in, and perform several other functions. Once a person decides to leave the company or resigns from the shareholder post, they sell the shares under their name. If someone sells 20 shares, the equivalent number of shares will be added to the liquidity pool. It will not have any ownership, meaning another person can purchase it with