Podcast
Questions and Answers
What happens to the dividend entitlement of cumulative preference shares when there are arrears from previous years?
What happens to the dividend entitlement of cumulative preference shares when there are arrears from previous years?
- It accumulates and is paid in the subsequent year. (correct)
- It is lost, similar to non-cumulative preference shares.
- It is doubled in the subsequent year.
- It remains the same, unaffected by arrears.
In a scenario where a company lacks profits to pay dividends on preference shares, what happens to the unpaid dividend for non-cumulative preference shares?
In a scenario where a company lacks profits to pay dividends on preference shares, what happens to the unpaid dividend for non-cumulative preference shares?
- It is carried forward and paid in the following year.
- It is lost. (correct)
- It is doubled in the subsequent year.
- It is converted into ordinary shares.
What feature do participating preference shares have that sets them apart from other types of preference shares?
What feature do participating preference shares have that sets them apart from other types of preference shares?
- They can be converted into ordinary shares.
- They are redeemable at a set date.
- They entitle holders to participate in higher dividends during profitable years. (correct)
- They have no maturity date.
What distinguishes redeemable preference shares from other types of preference shares?
What distinguishes redeemable preference shares from other types of preference shares?
What option do convertible preference shares offer to their holders that other preference shares do not?
What option do convertible preference shares offer to their holders that other preference shares do not?
How are votes typically allocated for ordinary shareholders at company meetings?
How are votes typically allocated for ordinary shareholders at company meetings?
What is the term commonly used when an individual shareholder appoints someone else to vote on their behalf?
What is the term commonly used when an individual shareholder appoints someone else to vote on their behalf?
How do different share classes in some companies impact voting rights?
How do different share classes in some companies impact voting rights?
Why have approaches like different share classes with restricted voting rights faced criticism from investors?
Why have approaches like different share classes with restricted voting rights faced criticism from investors?
In what form are most shares held nowadays, especially by ordinary shareholders?
In what form are most shares held nowadays, especially by ordinary shareholders?
What is the term used to describe the point at which shares and rights are traded as two separate instruments?
What is the term used to describe the point at which shares and rights are traded as two separate instruments?
What is the term used to describe the value of the right to acquire a share at a discounted price in a rights issue?
What is the term used to describe the value of the right to acquire a share at a discounted price in a rights issue?
What response may occur in the market initially following the announcement of a rights issue?
What response may occur in the market initially following the announcement of a rights issue?
What is the role of underwriters in a share issue?
What is the role of underwriters in a share issue?
What could potentially happen if the price at which new shares are offered in a rights issue is too high?
What could potentially happen if the price at which new shares are offered in a rights issue is too high?
What is the primary motivation behind a bonus issue?
What is the primary motivation behind a bonus issue?
How does a stock split differ from a bonus issue?
How does a stock split differ from a bonus issue?
What impact does a bonus issue have on the theoretical ex-bonus price?
What impact does a bonus issue have on the theoretical ex-bonus price?
Why might a company opt for a stock split?
Why might a company opt for a stock split?
In what way does a bonus issue differ from a cash dividend in terms of value distribution?
In what way does a bonus issue differ from a cash dividend in terms of value distribution?
In an order-driven market, how are buyers and sellers matched?
In an order-driven market, how are buyers and sellers matched?
What is the key characteristic of a 'deep' order book in an order-driven system?
What is the key characteristic of a 'deep' order book in an order-driven system?
How is queue priority determined in the order book of an order-driven system?
How is queue priority determined in the order book of an order-driven system?
What are Multilateral Trading Facilities (MTFs) considered as in comparison to traditional exchanges?
What are Multilateral Trading Facilities (MTFs) considered as in comparison to traditional exchanges?
What is the term used to describe trading away from the exchange directly between market counterparties?
What is the term used to describe trading away from the exchange directly between market counterparties?
What determines queue priority in an order-driven system?
What determines queue priority in an order-driven system?
How are trades typically executed on a multilateral trading facility (MTF)?
How are trades typically executed on a multilateral trading facility (MTF)?
What distinguishes off-exchange trading from trading on a stock exchange?
What distinguishes off-exchange trading from trading on a stock exchange?
In what circumstance would an institutional investor typically engage in over-the-counter (OTC) trading?
In what circumstance would an institutional investor typically engage in over-the-counter (OTC) trading?
What characterizes an order book in an order-driven system that is described as 'deep'?
What characterizes an order book in an order-driven system that is described as 'deep'?
What is the generally accepted method for settlement in the final phase of the trading process?
What is the generally accepted method for settlement in the final phase of the trading process?
How is settlement typically achieved in the trading process through electronic systems?
How is settlement typically achieved in the trading process through electronic systems?
What occurs once the trade instructions are matched and the settlement day is reached?
What occurs once the trade instructions are matched and the settlement day is reached?
What role does a broker play in the settlement process?
What role does a broker play in the settlement process?
What is the primary purpose of the settlement process in trading?
What is the primary purpose of the settlement process in trading?
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