Which of the following is true in the context of share?

A) Shares refer to the units into which the total share capital of a company is divided.

B) A share is a fractional part of the share capital.

C) A share forms the basis of ownership interest in a company.

D) The persons who contribute money through shares are called shareholders.

Choose the correct answer from the options given below.

A, B, C & D

The correct answer is option 3- A, B, C & D.

All statements are true.

Shares, refer to the units into which the total share capital of a company is divided. Thus, a share is a fractional part of the share capital and forms the basis of ownership interest in a company. The persons who contribute money through shares are called shareholders. The amount of authorised capital, together with the number of shares in which it is divided, is stated in the Memorandum of Association but the classes of shares in which the company’s capital is to be divided, along with their respective rights and obligations, are prescribed by the Articles of Association of the company. As per The Companies Act, a company can issue two types of shares (1) preference shares, and (2) equity shares (also called ordinary shares).