Podcast
Questions and Answers
What is the smallest unit in the company's share capital?
What is the smallest unit in the company's share capital?
- Share (correct)
- Market
- Bonds
- Debenture
What is a primary benefit of a Depository Receipts?
What is a primary benefit of a Depository Receipts?
- Ability to raise capital internationally (correct)
- Tax-free investment opportunities
- Easier purchase of real estate
- Immediate liquidity of assets
Who are considered residual claimants against the company's income or assets?
Who are considered residual claimants against the company's income or assets?
- Bondholders
- Preference Shareholders
- Debentureholders
- Equity Shareholders (correct)
Which type of shareholders participate in the management of their company?
Which type of shareholders participate in the management of their company?
What type of shares are issued free of cost to existing equity shareholders?
What type of shares are issued free of cost to existing equity shareholders?
Study Notes
Share Capital
- The smallest unit in the usual share capital of a company is a share.
Depositary Receipts
- The benefit of Depositary Receipts is the ability to raise capital internationally.
Equity Shareholders
- Equity shareholders are the residual claimants against the income or assets of the company.
- Equity shareholders participate in the management of their company.
Bonus Shares
- Bonus shares are issued free of cost to existing equity shareholders.
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Description
This quiz explores fundamental concepts related to share capital, depositary receipts, equity shareholders, and bonus shares. Test your understanding of how these elements function within a company and their implications for shareholders. Perfect for students learning about corporate finance.
