A share certificate is an instrument in writing, that is a legal proof of the ownership of the number of shares stated in it. Every company, limited by shares, whether it is public or private must issue the share certificate to its shareholders except in the case, where shares are held in the dematerialization system.

According to Section 2(84) of the Companies Act, 2013, share means share in the "Share Capital of a company and includes stock except where a distinction between stock and share is expressed or implied"

According to section 2(11) "body corporate" or "corporation" includes a private company, public company, one personal company, small company, Limited Liability Partnerships, a foreign company incorporated outside India, but does not include
(i) a co-operative society registered under any law relating to co-operative societies; and
(ii) any other body corporate (not being a company as defined in this Act)

A company needs funds for extension and development purpose without increasing its share capital, it can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. Such a loan certificate is called a debenture.

According to section 45 of the companies Act, 2013 each share of the share capital of the company shall be distinguished with a distant number for its individual identification. However, such distinction shall not be required, if the shares are held by a person whose name is entered as holder of beneficial internet as per the records of a company.

Private placement means offer of securities or invitation to subscribe to securities to a select group of persons through a private placement offer letter. 

Right shares are the shares which are issued by the company, with the aim of increasing the subscribed share capital of the company by further issue, if it is authorized by its Articles."The right shares are primarily issued to the existing equity shareholders through a letter of an issue, on pro rata basis.

Bonus share means to utilize the company's reserves and surpluses, issue of shares to existing share holder without taking any consideration is known as Bonus shares.

Sweat Equity shares means issue of shares to employees or directors at a lower price for cash or other than cash.

The term 'preference shares' means that part of the share capital the holders of which have a preferential right over payment of dividend (fixed amount or rate) and repayment of share capital in the event of winding up of the company.

Those shares which are not called as preference share are known as Equity share or the share of a company which do not have any preferential rights with regard to dividend and repayment of share capital at the time of liquidation of a company.

Formation of a company has been divided into four stages :
(i) Promotion
(ii) Registration
(iii) Capital Subscription and
(iv) Commencement of Business.

The person who envisages the idea is called a 'promoter'.