commerce baba

 WHAT IS STOCK? Companies need money to help them grow They use it for all kinds of things, like buying materials to make their products, developing new products, building plants and hiring people to work  To raise money, companies often split ownership of the companies into smaller "shares" that they sell to the public. The shares are also called 'stocks. HOW IT WORKS? A Stock Exchange is an institution which hosts a market where traders can buy and sell stocks. Traders make money by buying the stock before the price goes up, and then they sell it before it goes back down. The price of the stock reflects the available information about the financial health of the company. Traders watch the stock rise and fall and make decisions to make a profit. HOW TRADERS MAKE MONEY? If you sold your stock on a day when the price of that stock is higher than the price you paid for it, you would make money HOW TRADERS LOSE MONEY? If you sold your stock on a day when the price of that st

 Meaning:          'Company' means a company incorporated     under  companies Act,2013  or  under  any   of      the previous    laws    relating           to companies.    Company get money from issuing shares and  debentures. There are two types of shares (1) Equity shares (2) preference shares

 How do Demat shares operate?    To understand The term 'depository' here, let us go back to the times when shares used to be held in physical form by the shareholders and the evidence that a particular person was a shareholder in a particular company in which he/ she had invested, could be proved only by the fact that the said person had the share certificates of the company. With the advent of time, the companies dematerialised their shares by converting them into electronic form and thus, now-a-days if you wish to invest in the shares of a company, you can do so by opening a Demat account and so the shares get transferred to you. In this situation, you are the beneficial owner of the shares of the company in which you have invested. The physical shares are still issued by the Company and transferred to intermediary institutions (like NSDL and CDSL in India) who store and secure the shares for the company and the investor and maintains an account for their securities. These i

  Meaning: A preference share is a share which fulfils the following two conditions: 1. It carries preferential right in respect of          payment of dividend; and 2. It also carries preferential right in regard      to repayment of capital. In simple terms,        preference share capital must have                  priority both regards to dividend as well        as capital.

 How to Improve Quality of   life? 1. Meditate 2. Set goals 3. Read daily 4. Judge less 5. Eat healthy 6. Love yourself 7. Wake up early 8. Start a journal  9. Quit a bad habit 10. Ask for feedback 11. Learn a new skill 12. Believe in yourself 13. Start a new routine 14. Plan a new strategy 15. Learn how to invest 16. Don't make excuses 17. Stop procrastinating 18. Review your finance 19. Focus on the positive 20. Change your attitude 21. Learn a new language 22. Question your purpose 23. Focus one day at a time 24. Don't compare yourself 25. Automate and delegate 26. Acknowledge your flaws  27. Identify your blind spots 28. Leave your comfort zone  29. Change your social circle 30. See failure as opportunity 31. Follow an exercise routine 32. Make a business bucket list 33. Start being more organized  34. Quit things that aren't working 35. Write a letter to your future self  36. Watch educational videos instead

MEMORANDUM OF ASSOCIATION               The    Memorandum of Association of company    is  in  fact its charter; it defines its constitution  and the scope of  the  powers of the      company     with  which  it  has     been established under  the  Act.  It     is    the  very foundation on  which  the  whole  base of the company is built. Contents of memorandum: Section 4 of the Companies Act provides that the memorandum of association of every company must contain the following clauses: 1. Name Clause 2. Situation or Registered Office Clause 3. Objects Clause 4. Liability Clause 5. Capital Clause (only in the case of a company having a share capital) 6. Association Clause/Subscription Clause 7. Succession Clause (only in the case of OPC)

 As per Section 406, a company which has been incorporated as a nidhi with the object of cultivating the habit of thrift (cost cutting) and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefits and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies. Conversion of a P into a Public Compar 1. Pass special resolu of its articles the three

  Dormant company:-               Where a company    is     formed  and registered under this Act for a  future project or to hold  an   asset or   intellectual property and   has     no     significant            accounting transaction  such a  company or    an inactive company  may  make  an  application  to   the Registrar   in      such      manner  as   may  be prescribed     for obtaining    the  status  of   a dormant company.          "Significant accounting transaction" means any transaction other than- (i) payment of fees by a company to the               Registrar. (ii) payments made by it to fulfil the                   requirements of this Act or any other law (iii) allotment of shares to fulfil the requirements of this Act; and (iv) payments for maintenance of its office and records.

 According to Section 2(8) "authorised capital " or "nominal capital" means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company.       Whereas Section 2(86) "subscribed capital " means such part of the capital which is for the time being subscribed by the members of a company.       As per Section 2(15) "Called-up capital ” means such part of the capital, which has been called for payment.       Section 2(64) defines "paid-up share capital" or "share capital paid-up" means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called.

 How to check residential status of person in India?        There are 2 types of residential status:       1.Resident of India            (a) Ordinary resident of India           (b) Resident but not ordinary resident                    of India             2. Non resident of india Resident: As per sec.6(1) An person is said                     to be resident if  Present in india                     for 182 days or more in relevant                     past year.                    

 Foreign Company As per Section 2(42), foreign company means any company or body corporate incorporated outside India which- (I) Has a place of business in India whether by itself or through an agent, physically through electronic mode; and  (ii) Conducts any business activity in India in any other manner

  Government Company   As per Section 2(45), government company means any company in which not less than fifty-one per cent. of the paid-up share capital is held by- (i) the Central Government, or (ii) by any State Government or Governments, or  (iii) partly by the Central Government and partly by one or more State governments, And the section includes a company which is a subsidiary company of such a government company

Company One Person Company:  Definition :                      As per Section 2(62), One Person Company' means a company which has only one person as a member. It is basically a private company with some unique features. As regards the name of a One Person Company, the Act provides that the words "One Person Company" or 'OPC' shall be mentioned in brackets below the name of such Company, wherever its name is printed, affixed or engraved.

         As per section 2(68), In private company there are minimum 2 persons as member and maximum 200 members.    A private company should have at least 2 director.  The name of a private limited company must end with the words"Private Limited". Restricts transferability of shares. Prohibits to issue securities to public. Prohibits to acceptance of deposits from public.

Definition:                       'Company' means a company incorporated under companies Act,2013 or under any of the previous laws relating to companies. Types of companies:-          According The Companies Act,2013 There are many types of companies in india.  Based on control :  1.One person company 2.Private company 3.public company 4.Small company Based on control : 1.Holding & subsidiary companies 2.Associate company Based on Liability : 1.Company Limited by shares 2.Company limited by guarantee 3.Unlimited liability Based on capital : 1.Listed 2.Unlisted Other companies : 1.Government company 2.Foreign company 3.Non profit company 4.Dormant company 5.Nidhi company