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Questions and Answers
What is a share in financial markets?
What is the denominated value of a share?
What is the income received from the ownership of shares called?
What does share capital refer to?
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What are the different types of shares mentioned in the text?
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Study Notes
Shares in Financial Markets
- A share represents a unit of ownership in a company, giving the shareholder a claim on a proportion of its assets and profits.
Denominated Value of a Share
- The denominated value of a share, also known as the face value or par value, is the minimum value of the share as stated in the company's memorandum of association.
Income from Ownership of Shares
- The income received from the ownership of shares is called dividend, which is a portion of the company's profit distributed to shareholders.
Share Capital
- Share capital refers to the amount of money raised by a company through the issue of shares, which is used to finance its business activities.
Types of Shares
- Ordinary shares, also known as equity shares, represent ownership in a company and give shareholders voting rights.
- Preference shares have a higher claim on assets and dividends than ordinary shares, but typically do not carry voting rights.
- Other types of shares mentioned include redeemable shares and convertible shares.
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Description
"Test Your Knowledge About Shares and Share Capital" - Take this quiz to assess your understanding of shares, share capital, and shareholders in the context of financial markets and corporate ownership. Sharpen your knowledge of equity ownership and investment vehicles such as mutual funds, limited partnerships, and real estate investment trusts.
