Issue of on Shares

What is the primary purpose of issuing shares by a company?

• To reduce debt

• To pay dividends

• To raise capital

• To appoint directors

Shares are issued to the public through which primary method?

• Rights Issue

• Private Placement

• Initial Public Offering (IPO)

• Bonus Issue

Which of the following is a type of share?

• Ordinary Share

• Golden Share

• Preference Share

• All of the above

What is the face value of a share?

• The market value

• The value at which it is listed

• The original value stated on the share certificate

• The dividend value

In a rights issue, shares are offered to:

• The public

• New investors only

• Existing shareholders

• Financial institutions

When shares are issued at a price more than the face value, it is called:

• Issue at discount

• Issue at par

• Issue at premium

• Bonus issue

Bonus shares are issued from:

• Share application money

• Share premium account

• Free reserves and retained earnings

• Bank loans

Which regulatory body oversees the issue of shares in India?

• RBI

• SEBI

• IRDA

• NABARD

What is under-subscription of shares?

• When applications exceed the shares offered

• When applications match the shares offered

• When fewer applications are received than shares offered

• When shares are bought back

What is the term for shares issued to promoters at a nominal price?

• Sweat equity shares

• Rights shares

• Bonus shares

• Preference shares