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| Types of Mutual Funds:
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| Shares of Stock & Debentures:
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When the capital for a business is very large, a Joint Stock Company
is floated to mobilize the capital. Those who take the initiative to start a
joint stock company are called the promoters of the company. The company
may raise funds for its requirements through the issue of stocks, shares and
debentures. The value notified on their certificates is called Face Value or
Nominal Value or Par Value.
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| Shares |
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| The total capital of a company may be divided into small units called
shares. A share may be of any face value depending upon the capital
required and the number of shares into which it is divided. The holders of
the shares are called share holders. The shares can be purchased or sold
only in integral multiples.
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| Stocks
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| The shares may be fully paid or partly paid. A company may
consolidate and convert a number of its fully paid up shares to form a single
stock. Stock being one lump amount can be purchased or sold even in
fractional parts.
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