Shares
A company issues shares to raise the money needed to finance its operations. When a company issues shares, it grants shareholders various entitlements-for example, the right to receive dividends or the right to share in the capital of the company upon winding up. A company may issue different types of shares, so these entitlements may vary between different shareholders.
Non-share equity interests
Under a measure taking effect from 1 July 2001 (the 'debt/ equity rules'), certain interests which are not shares in legal form are treated in a similar way to shares for some tax law purposes. These interests are called non-share equity interests. Examples are some income securities and some stapled securities. The Guide to the debt and equity tests provides an overview of the debt/ equity rules and explains what a non-share equity interest is.