BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Based on the issue price, the share issue can be divided in to ____
A
Issue of shares at par
B
Issue of shares at premium
C
Issue of shares at discount
D
All of the above
Explanation: 

Detailed explanation-1: -A bonus issue of shares is stock issued by a company in lieu of cash dividends. Shareholders can sell the shares to meet their liquidity needs.

Detailed explanation-2: -The most common splits are 2-for-1 or 3-for-1, which means a stockholder gets two or three shares, respectively, for every share held. In a reverse stock split, a company divides the number of shares that stockholders own, raising the market price accordingly.

Detailed explanation-3: -Methods of Issuing Shares: Deal through Intermediaries. Deal to Inside Coterie. Deal through Managing Brokers. Special Subscriptions.

Detailed explanation-4: -Generally, the Issue of Shares is of two kinds-common shares and preference shares. While the former allows for voting rights to the shareholders, the latter does not permit the holders of any rights. However, the dividend is passed on to both in case of a profit.

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