Advertisements
Advertisements
Question
Explain the following term/concept:
Capitalisation of Reserves
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.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Registered shareholders receive dividend through ______ warrant.
Select the correct answer from the options given below and rewrite the statement.
Shares issued free of cost to the shareholders are known as ______ shares.
Secretarial correspondence with members should be ____________.
Select the correct answer from the options given below and rewrite the statement.
Dividend is paid out of ______ of the company
______ is issued by the company to its registered shareholders after the declaration of dividend at the Annual General Meeting of the company.
State whether the following statement is true or false.
Bonus shares are issued to existing equity shareholders.
State whether the following statement is true or false.
Building fund is used for issue of bonus shares.
State whether the following statement is true or false.
Every company must issue or despatch a share certificate to the allottee within three months after allotment of shares.
Complete the sentence.
A company capitalises its Reserve Fund for issue of ______ shares.
Complete the sentence.
Dividend is approved by the ______ in the Annual General Meeting.
Complete the sentence.
The ______ has to communicate the decisions of the management to the members by conducting correspondence.
Answer in one sentence:
What is Dividend?
Correct the underlined word/s and rewrite the following sentence:
The person who purchases shares of the company is called Depositor
Correct the underlined word and rewrite the following sentence:
Bonus shares are issued as a free gift to the preference shareholders.
Arrange in proper order.
a) Member
b) Applicant
c) Bonus shares
Find the odd one.
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)
