Issue,forfeiture and reissue of shares

What are the main types of shares issued by companies?

• Common shares and convertible shares

• Stock options and warrants

• Equity shares and preference shares

• Bonds and debentures

What rights do shareholders typically possess?

• Voting rights, dividend rights, information rights, and rights to assets upon liquidation.

• Rights to dictate company policies

• Guaranteed profits regardless of company performance

• Exclusive rights to appoint board members

Describe the process of issuing new shares in a company.

• The process of issuing new shares involves board approval, regulatory compliance, pricing, offering, subscription, and issuance.

• The process involves only pricing and offering without subscription.

• Issuing shares requires only shareholder approval.

• New shares can be issued without any regulatory compliance.

What does it mean for shares to be forfeited?

• Forfeited shares are shares that have been taken back by the company due to non-payment or failure to meet other obligations.

• Forfeited shares are shares that are given as bonuses to employees.

• Forfeited shares are shares that have increased in value.

• Forfeited shares are shares that have been sold to new investors.

Under what circumstances can shares be reissued after forfeiture?

• Shares can be reissued without following any procedures.

• Shares can be reissued after forfeiture if proper procedures are followed and they are not cancelled.

• Shares can be reissued only if they were never issued before.

• Shares can be reissued only if they are cancelled first.

How does the forfeiture of shares impact a company's capital?

• The forfeiture of shares converts them into preferred shares.

• The forfeiture of shares has no effect on a company's capital.

• The forfeiture of shares decreases a company's issued share capital.

• The forfeiture of shares increases a company's issued share capital.

What are bonus shares and how are they issued?

• Bonus shares are sold to new investors at a premium.

• Bonus shares are additional shares issued to existing shareholders at no cost, typically to distribute retained earnings.

• Bonus shares are dividends paid in cash to shareholders.

• Bonus shares are shares that can only be traded on the secondary market.

What are rights shares and how do they differ from regular shares?

• Rights shares are shares offered to existing shareholders to buy additional shares at a discount, while regular shares are standard shares available for purchase on the market.

• Rights shares are a type of bond issued by the company.

• Regular shares can only be purchased at a premium price.

• Rights shares are only available to new investors.

What is an Employee Stock Option Plan (ESOP)?

• A program that grants employees free vacation days instead of stock options.

• A retirement plan that invests employee contributions in mutual funds.

• An Employee Stock Option Plan (ESOP) is a program that allows employees to buy company stock at a set price.

• A plan that allows employees to receive cash bonuses based on company performance.

How do bonus shares affect the overall equity of a company?

• Bonus shares do not affect the overall equity of a company.

• Bonus shares are a form of debt financing for the company.

• Bonus shares increase the overall equity of a company.

• Bonus shares dilute the value of existing shares.