Quiz on Shares and Stock Market

What is a share?

• A loan given to the company

• A unit of ownership in a company

• A type of bond

• A government security

Who can issue shares?

• Individuals

• Companies

• Banks only

• Government only

What is the face value of a share?

• Market price of the share

• The original value printed on the share certificate

• The price at which the share is sold in the stock market

• The total value of all shares issued

What is an Initial Public Offering (IPO)?

• Buying back shares

• Selling old shares

• First-time issue of shares to the public

• Issuing bonus shares

What is the market price of a share?

• The price at which the company issues shares

• The price determined by the stock exchange

• The price printed on the share certificate

• The price fixed by the government

What is the minimum subscription for issuing shares?

• 50% of the total shares issued

• 75% of the total shares issued

• 90% of the total shares issued

• 100% of the total shares issued

What is a rights issue?

• Issuing shares to the general public

• Issuing shares only to existing shareholders

• Issuing shares to the government

• Issuing shares at a discount

What are preference shares?

• Shares that have priority in receiving dividends

• Shares that do not receive any dividends

• Shares issued only to company employees

• Shares issued at a discount

What are equity shares?

• Shares that provide fixed dividends

• Shares that represent ownership in the company

• Shares that are only given to directors

• Shares that do not carry voting rights

What does it mean when shares are issued at a premium?

• Issued at face value

• Issued below face value

• Issued at a higher price than face value

• Issued for free