A disadvantage of shares as security is that a) the lender is required to register the certificate for the shares with the registrar of companies b) if a company restructures its shareholding by way of a rights issue the value of each share will increase c) the lender is required to register the certificate for the shares with the register off titles d) the value the share is always the same as its power value so lenders will have to sell in a time of high inflation will lose money

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
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  1. A disadvantage of shares as security is that

a) the lender is required to register the certificate for the shares with the registrar of companies

b) if a company restructures its shareholding by way of a rights issue the value of each share will increase

c) the lender is required to register the certificate for the shares with the register off titles

d) the value the share is always the same as its power value so lenders will have to sell in a time of high inflation will lose money

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