Issues of Shares: Terminologies Used - SS2 Accounting Past Questions and Answers - page 1

1

What is share capital?

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A

Total number of shares issued by a company

B

Total value of the shares issued by a company

C

Maximum number of shares a company can issue to shareholders

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2

What are authorized shares?

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A

The maximum number of shares a company can issue to shareholders

B

The total number of shares issued by a company

C

The face value of a share

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3

What is a dividend?

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A

A payment made by a company to its shareholders

B

The maximum number of shares a company can issue to shareholders

C

The current value of a share based on the stock market's supply and demand

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4

What is an IPO?

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A

The first time a company offers shares of its stock to the public

B

A process in which a company divides its existing shares into multiple shares

C

An offering of additional shares to existing shareholders

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5

What is a stock split?

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A

A process in which a company divides its existing shares into multiple shares

B

An offering of additional shares to existing shareholders

 

C

A payment made by a company to its shareholders

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6

Define a shareholder.

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7

What is a rights issue?

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