When can shares be Forfeited?

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: Why might an investor-owned firm choose to issue different classes of common stock?

A: An investor owned firm issues different classes of common stock mainly due to the difference in…

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: In accounting for mutual ownerships, what is the treasury stock approach?

A:

Q: What are the distinguishing classes of shares?

A: Shares: The capital of the company is divided into units of small denomination. It is called Shares.…

Q: Why are holding gains and losses treated differently for trading securities and securities…

A:

Q: What are Nike’s choices in accounting for the share repurchases?

A:

Q: In what situation should a firm split its stock?

A: Firms generally split the stock when the price of the share becomes too high or exceeds the level…

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: 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: What is meant by Forfeiture of shares?

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

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: When can a company forfeit its shares?

A: The mechanism by which a corporation forfeits the stock of an investor or stockholder who ceases the…

Q: Why Shares repurchased and not retired are referred to as treasury stock?

A: Treasury stock is also known as treasury shares or reacquired stock. It refers to that previous…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

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: Is share dividend payable a current or a non current liability? Explain your answer.

A: The dividend is payable to shareholders on a number of shares they hold as of the date of…

Q: When purchasing a company's stock, what would be your primary factors in valuing that stock?

A: Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to…

Q: Stock appreciation right would normally be settled through

A: Second option is wrong because stock appreciation right is not settled through issue of share…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: why should a company invest in the stock of another company?

A: When a company invests in the stock of another company, it is known as Inter-corporate investments.

Q: Explain Typical Rights of Preferred Shares.

A:

Q: Explain Resale of Shares.

A: Introduction: Resale of shares is nothing but selling the shares that are previously bought by…

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: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: When does a share capital becoming outstanding?

A: Share capital consists of authorized share capital, issued and paid up share capital.

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: Define Reacquired Shares.

A:

Q: why a specific company would purchase the stock of another and provide an example

A: The stock values of the two companies typically move in predictable opposing directions after an…

Q: What do you mean by private placement of shares? What are the options for a company?

A: It happens when an organization makes a contribution of securities to an individual or a group of…

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: What are bonus shares?

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

Q: Who are the major purchasers of nonconvertible preferred stock? Why?

A: Mostly, the buyers of preferred stocks are institutional investors because they get an incentive…

Q: What amount should be reported as share capital?

A: The share capital is credited with only the face value of shares issued. This is calculated by…