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प्रश्न
Explain the following term/concept:
Bonus shares
उत्तर
Bonus shares are fully paid shares issued free of cost to the existing equity shareholders in proportion to their shareholdings. Usually, financially sound companies issue Bonus Shares out of their accumulated distributable profits or reserves. Hence, as the profits or reserves are capitalised, it is also called ‘Capitalisation of Profits or Reserves’. A company cannot issue Bonus shares out of reserves created by the Revaluation of Assets. It also cannot issue Bonus Shares instead of paying dividends. Once the announcement for Bonus Shares is made by the Board of Directors, it cannot be then withdrawn.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ means shares are offered to the public.
Under _________ method, issue price of shares is based on bidding.
In ________, shares of a company are offered to the public for the first time.
Write a word or a term or a phrase which can substitute the following statement.
Subsequent issue of shares after an IPO.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
Complete the sentence.
In Book Building Method, the final price at which shares are offered to investors is called as ______
Answer in one sentence.
To whom is Sweat Equity Shares offered by a company?
Answer in one sentence.
To whom can a company issue Bonus Shares?
Answer in one sentence.
What is the subsequent issue after IPO called as?
Correct the underlined word and rewrite the following sentence.
Under Fixed price issue method, the price of shares is fixed through bidding process
Explain the following term/concept.
Employees Stock Option Scheme
Explain the following term/concept.
Further Public Offer
Study the following case/situation and express your opinion.
TRI Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
- What should the company offer - IPO or FPO?
- Can the company offer Bonus Shares to raise its capital?
- Can the company enter into Underwriting Agreement?
Initial Public Offer and Further Public Offer
Answer the following question.
Explain briefly the different types of shares offered by a company to its existing equity shareholders.
Match the pairs.
| Group A | Group B |
| a) Bond holders | 1) Deals with acquisition and use of assets |
| b) IPO | 2) Declared in Annual General Meeting |
| c) Corporate finance | 3) Any issue after first-time public offer |
| d) Final dividend | 4) Deals with acquisition and use of capital |
| e) Preference shares | 5) First-time public offer |
| 6) Fixed rate of dividend | |
| 7) Owners | |
| 8) Fluctuating rate of dividend | |
| 9) Creditors | |
| 10) Declared in board meeting |
Write a word or a term or a phrase which can substitute the following statements.
Highest bid price in Book Building method.
Give one word or phrase for the following sentence:
Process of offering shares of the company to the public for the first time.
Explain provisions that the company must fulfil.
Explain Pricing methods to offer shares to the public.
