What are the distinguishing classes of shares?

Q: How are common shares different from preferred shares? Cite advantages and disadvantages.

A: Share can be defined as unit of ownership in a company. Investors invests in a company by purchasing…

Q: What is Pro rata allotment of shares?

A: Pro rata: The word pro-rata means proportional. It is an equal allocation based on proportion to the…

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: What is common stock refer to?

A: A common stock is a security that represents ownership of equity in a company. The term ordinary…

Q: What is shares?....

A: generally, company capital is divided into small units called shares.  holding some number of shares…

Q: What are the considerations that may be received in exchanged for share capital? What are the…

A: The money a firm raises by issuing common or preferred shares is referred to as share capital. With…

Q: What are preference shares

A: In order to run businesses, capital is needed. Capital can be in the form of cash or in the form of…

Q: What is a stock split and how does it work?

A: Stock and the Spilt are two individual word and has its individual meanings. STOCK: Stock is a…

Q: What are the two parts of the stock?

A: Equity capital is the funds invested by the owners of the company. The equity holders of the owners…

Q: over subscription of shares will be dealt with

A: Over subscription of shares occurs when more applications are received than number of shares…

Q: how to raise shares with equal distribution

A: Share is the share part of the capital of the company. Shares represent the ownership claim on the…

Q: What is the number of shares outstanding?

A: The shares which are outstanding is the shares which has been in the market which means those shares…

Q: What is founders’ shares?

A: Founders shares: Founders shares is the shares released to the originators of a public corporation…

Q: what is the primary purpose of a stock split?

A: The main purpose of a stock split is to increase the liquidity of the stock. hence the number of…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: Discuss the differences between common shares and preferred shares.

A: While both common shares and preferred shares are part of the share capital of a company they are…

Q: How are shares issued at full market value treated differently from rights issues? Explain why it…

A: Destitute organizations will move to rights problems to fund-raise once they actually would like it.…

Q: Determine whether potential common shares are antidilutive.

A: Antidilutive: Antidilutive refers to an effect of certain actions like retirement of securities,…

Q: What are the fundamental rights of a common stockholder?

A: Introduction: A stockholder is also referred to as a shareholder or an individual who owns at least…

Q: (d) Explain and justify the accounting treatment for share dividends and share splits.

A: Share dividend is the form of dividend in which company issue shares as dividend rather than cash.…

Q: Explain Typical Rights of Preferred Shares.

A:

Q: What are different types of preference shares?

A: Preference Shares:   It is a form of ownership over the company which entitles the shareholder a…

Q: Equity share are known as:

A: Equity shares are the shares which provides its holders the ownership rights and right to vote…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…

Q: The difference between equity shares and preference shares and debt?

A: The various source using which an entity can raise its finance to run its business operations are;…

Q: What is the difference between the fully paid shares and the partially paid shares?

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: a) Should preference shares be disclosed as 'equity' or 'debt'? Response

A: Preference Shares are the sources of capital for a corporation which are paid fixed rate of…

Q: What are the categories of shareholder's equity?

A: Shareholders Equity means total amount belonging to the shareholders of the business. It means…

Q: Define Reacquired Shares.

A:

Q: Most preferred shares are cumulative. Explain what this means.

A: Preferred stock:   The stock that provides a fixed amount of return (dividend) to its stockholder…

Q: What is a reverse stock split?

A: Stock split: Stock split refers to the dividing one share into two of more shares. It is usually…

Q: What are dual class shares? Why do they sell at a premium?

A: Dual class shares are often used by companies to raise equity financing. This class of shares are…

Q: value a share of common stock.

A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…

Q: What is the Ownership rights held by common shareholders?

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: What are bonus shares?

A: Bonus shares are given from reserves and surplus/retained earnings.

Q: Differentiate an ordinary share capital from a preference share capital.

A: Introduction:- Generally companies may raise funds or money for investments by way of issue of…