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Company's usually issue stocks to generate capital for their business and expansion plans. When a company goes public it sells its shares to the public and gets money in return. This way they raise capital. After a stock gets listed in a notified stock exchange people trade the stock in the markets and the price of the stock may go up or down based on the way the company's business is developing
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Advantages and disadvantages of rights issue?
Some advantages to rights issues include the fact that share holders are able to buy additional shares at a lower rate, and by selling these shares, the company is able to pay off some of their debt. Disadvantages of rights issues include stocks that have a reduced value.
When company issues shares at a premium the amount of premium may be received by the company?
yes,the company can receive the amount of premium.
Why shares outstanding sometimes goes up?
Because the company issues more shares or does a split, issuing several new shares for in place of one old share. The latter is a way to reduce the market price per share, which might be desirable so as to attract investors who could not affort a very high priced stock.
What are the rights of stockholders?
Stockholders have the right to vote on corporate-wide issues. They also own a portion of the corporation and may buy, sell, and trade their shares.
What is the difference between Bonus Shares and Shares split?
in case of bonus shares the value of the share decreases proportionate to the number of bonus shares issued. for eg: if company issues bonus shares in ratio of 1:1 and the price of share is 900 , then after bonus issue, the corresponding value of the share gets Rs. 450.genreally company issue this in place of giving dividends.the market captalisation doesnt get affected. as if shares doubles the prices is halved. whereas in split shares the face value of share decreases. generally the face value of share is 10 Rs. but face value can be high. eg: if face value is 100 Rs. then company can split d share in ratio of 100:10. ..now the person holding 100 shares of rs 100 now will hold 1000 shares of 10 Rs each. now shares can be traded more frequently and this will in turn increase the liquidity of the share
Do 13 shares of American Drug Company have any value today?
depends what drug comapany but it should have some substantial value due to the cost of drugs today
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is financing activities?
Issues of shares, repayment of loan, sale of an investment.
What do you mean by number of outstanding shares?
Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!
What comapany has a white H with a red underline?
Thq
When a comapany pays a bill the cash account WILL BE?
Debited.
What are the subsequent issues of shares of a company called after the IPO?
They are called Secondary Offering.
For the company who had already have IPO mif they want to issue the new shares are they need to make another IPO?
No. A company can issue an IPO only once. They can issue new shares through bonus shares or through rights issues.
What is issue of shares?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
What is Share Allotment?
The process of allocating shares between shareholders usually pro rata or according to some prior agreement. The allotment may have conditions, which must be satisfied before the shares are issued, eg payment for them. This precedes the actual issue of shares.
What is the difference between Sainsbury's and Oxfam?
oxfam is a charitity and sainsburys in a ltd comapany
What is issue of right shares?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
