Issues of Shares: Terminologies Used - SS2 Accounting Past Questions and Answers - page 1
What is share capital?
Total number of shares issued by a company
Total value of the shares issued by a company
Maximum number of shares a company can issue to shareholders
What are authorized shares?
The maximum number of shares a company can issue to shareholders
The total number of shares issued by a company
The face value of a share
What is a dividend?
A payment made by a company to its shareholders
The maximum number of shares a company can issue to shareholders
The current value of a share based on the stock market's supply and demand
What is an IPO?
The first time a company offers shares of its stock to the public
A process in which a company divides its existing shares into multiple shares
An offering of additional shares to existing shareholders
What is a stock split?
A process in which a company divides its existing shares into multiple shares
An offering of additional shares to existing shareholders
A payment made by a company to its shareholders
Define a shareholder.
A shareholder is an individual or entity that owns shares in a company.
What is a rights issue?
A rights issue is an offering of additional shares to existing shareholders, usually at a discounted price.