Advertisements
Advertisements
Question
______ shares are issued free of cost to existing equity shareholders.
Options
Bonus
Right
Equity
Advertisements
Solution
Bonus shares are issued free of cost to existing equity shareholders.
Explanation:
Bonus shares are issued as gift to equity shareholders. These shares are issued free of cost to existing equity shareholders. These are issued out of accumulated profits. Bonus shares are issued in proportion to the shares held. Thus capital investment of (ordinary) equity shareholder tends to grow on its own. This benefit is available only to the equity shareholder.
RELATED QUESTIONS
The holder of ______ preference shares has the right to convert their shares into equity shares.
Write a word or a term or a phrase which can substitute the following statement.
A document of title of ownership of shares.
Write a word or a term or a phrase which can substitute the following statement.
The holders of these shares are entitled to participate in the surplus profit.
Write a word or a term or a phrase which can substitute the following statement.
Name the shareholders who participate in the management.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is written on the share certificate.
Equity shareholders enjoy a fixed rate of dividend.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What is a share?
Answer in one sentence.
What are cumulative preference shares?
Distinguish between the following.
Equity shares and Preference shares.
Justify the following statement.
Equity shareholders are real owners and controllers of the company.
Justify the following statement.
Different investors have different preferences.
Justify the following statement.
Equity share capital is risk capital.
State any 4 features of shares.
Justify the following statement.
Equity shareholder enjoys certain rights.
Explain the following term/concept in detail:
Equity shares
Explain the following term/concept in detail:
Preference shares
