Advertisements
Advertisements
Question
Explain the following term/concept.
Employees Stock Option Scheme
Solution
- Under this scheme, the company offers certain shares from the new issue to the whole-time directors, officers, or employees of the company.
- The company offers the shares at a predetermined price which is usually less than the price offered to the general public. ESOS encourages employees as they feel proud to be owners of the company for which they are working and company also benefits as it can retain good employees.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ means shares are offered to the public.
___________ is offered to existing equity shareholders.
Select the correct answer from the options given below and rewrite the statement.
______ are offered to permanent employees, Directors and Officers of a company.
Write a word or a term or a phrase which can substitute the following statement.
Subsequent issue of shares after an IPO.
Write a word or term or phrase which can substitute the following statement.
It is also called ‘Capitalisation of Profits’.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
State whether the following statement is true or false.
Bonus Shares are issued at a discounted price to the Equity shareholders.
Answer in one sentence.
Name the method under which the issue price of shares is fixed through a bidding process.
Answer in one sentence.
What is Public Issue?
Correct the underlined word and rewrite the following sentence.
Under Fixed price issue method, the price of shares is fixed through bidding process
Correct the underlined word and rewrite the following sentence:
FPO refers to offering of shares to the public for the first time.
Explain the following term/concept.
Subscribed capital
Explain the following term/concept.
Further Public Offer
Study the following case/situation and express your opinion.
Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.
- Authorised capital
- Subscribed capital
- Issued capital
Initial Public Offer and Further Public Offer
Answer the following question.
Explain the two methods a company can use to make its public offer of shares.
Explain the following term/concept.
Employee Stock Purchase Scheme
Give one word or phrase for the following sentence:
Process of offering shares of the company to the public for the first time.
Give one word or phrase for the following sentence:
Full form of SARS.
