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Question
Explain the following term/concept:
Capitalisation of Reserves
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Solution
(1) The process of issuing the bonus shares out of the company's profits or reserves is known as "Capitalisation of Profits or Reserves.
(2) It is a reward to shareholders, distributed in proportion to the number of shares each owns. The process has no impact on a corporation book value.
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| Group ‘A’ |
Group ‘B’ |
|
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Answer in one sentence.
Which type of shareholders enjoy the benefit of Bonus Shares?
Correct the underlined word and rewrite the following sentence:
Bonus shares are issued as a free gift to the preference shareholders.
Correct the underlined word/s and rewrite the following sentence:
Payment of dividend must be made within 21 days of its declaration.
Explain the following term/concept:
Bonus Shares
Justify the following statement
The Company Secretary should take certain precautions while corresponding with members
Explain the following term/concept.
Correct information
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ | ||
| a) | Return on shares | 1 | ______ |
| b) | Capitalization of reserve fund | 2 | ______ |
| c) | First depository of world | 3 | ______ |
| d) | ______ | 4 | payment of dividend electronically |
| e) | ______ | 5 | Buying and selling of existing securities |
(Germany, Bonus shares, Secondary market, Dividend, ECS)
