Podcast
Questions and Answers
What is the main reason a company divides itself into multiple shares?
What is the main reason a company divides itself into multiple shares?
- To raise funds from multiple investors instead of a few (correct)
- To make it easier for a few individuals to buy the entire company
- To increase the number of shareholders in the company
- To make the company more complex
If a company divides itself into 1 crore shares, what fraction of the total company value does each share represent?
If a company divides itself into 1 crore shares, what fraction of the total company value does each share represent?
- 1/1,000 of the total company value
- 1/100,000 of the total company value
- 1/1,000,000 of the total company value
- 1/10,000,000 of the total company value (correct)
Which of the following is NOT a reason a company might have thousands or even lakhs/crores of shares?
Which of the following is NOT a reason a company might have thousands or even lakhs/crores of shares?
- To increase the complexity of the company's ownership structure (correct)
- To represent smaller fractions of the total company value
- To raise a large amount of funds from multiple investors
- To make it easier for individuals to invest in the company
If a company has divided itself into 100 shares, what percentage of the total company value does each share represent?
If a company has divided itself into 100 shares, what percentage of the total company value does each share represent?
Which of the following is NOT a likely reason an individual investor might own a large chunk of a company's shares (e.g. in the lakhs)?
Which of the following is NOT a likely reason an individual investor might own a large chunk of a company's shares (e.g. in the lakhs)?
Which of the following is the most accurate description of how a company's shares are typically divided and sold?
Which of the following is the most accurate description of how a company's shares are typically divided and sold?
What does the market capitalization of a company essentially mean?
What does the market capitalization of a company essentially mean?
Which of the following is a characteristic of large-cap companies?
Which of the following is a characteristic of large-cap companies?
How do stock indices like SENSEX and NIFTY represent the overall health of the stock market?
How do stock indices like SENSEX and NIFTY represent the overall health of the stock market?
Which of the following is a characteristic of small-cap companies?
Which of the following is a characteristic of small-cap companies?
Which of the following is a characteristic of mid-cap companies?
Which of the following is a characteristic of mid-cap companies?
What is the key difference between investing in individual stocks and investing in a stock index?
What is the key difference between investing in individual stocks and investing in a stock index?
What is the market capitalization range for large-cap companies?
What is the market capitalization range for large-cap companies?
Which of the following is an example of a mid-cap company?
Which of the following is an example of a mid-cap company?
What is the market capitalization range for small-cap companies?
What is the market capitalization range for small-cap companies?
Which of the following statements about small-cap companies is true?
Which of the following statements about small-cap companies is true?
Which of the following is an example of a large-cap company?
Which of the following is an example of a large-cap company?
What is the primary factor used to categorize companies as large-cap, mid-cap, or small-cap?
What is the primary factor used to categorize companies as large-cap, mid-cap, or small-cap?
