Debenture Features and Priorities Quiz

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SleekEuphonium
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14 Questions

On liquidation of a company, who ranks last in the list of claimants?

Equity shareholders

What type of shares get dividends at a fluctuating rate depending on the company's profits?

Equity shares

Which type of shares do not have preferential right for payment of dividend and repayment of capital?

Equity shares

Which type of shares enjoy normal voting rights and can participate in the management of the company?

Preference Shares

Which type of shares do not have preferential rights for dividend payment?

Debentureholders

Which type of shares are creditors and rank prior to shareholders for repayment on liquidation of a company?

Preference Shares

Equity capital cannot be returned during the life of a company, except in case of what?

Buy back

What is the method of issuing shares where the company offers shares to its existing equity shareholders?

Rights Issue

Which method of issuing shares involves setting a floor price or a price band prior to opening the subscription?

Book-Building Method

What scheme allows employees of the company to purchase shares at a discounted price?

Employee Stock Option Scheme

In which method of issuing shares does the company directly place securities with selected investors?

Private Placement

Which type of issue of shares allows existing shareholders to acquire new shares in proportion to their existing shareholding?

Preferential Allotment

What scheme aims at rewarding employees by providing them with shares based on their performance?

Stock Appreciation Rights Scheme

Which method of issuing shares involves setting a fixed price for the subscription of shares?

Fixed Price Issue Method

Test your knowledge on the features and priorities of debentures. Learn about the assurance of repayment, interest payments, and the priority of debentureholders in repayment. Are you familiar with these key aspects of debentures?

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