Home
Class 12
ACCOUNTS
What are the two types of shares which a...

What are the two types of shares which a company can issue ?

Text Solution

Verified by Experts

(i) Preference Shares, and (ii) Equity Shares.
Promotional Banner

Topper's Solved these Questions

  • COMPANY ACCOUNTS - ISSUE OF SHARES

    DK GOEL|Exercise VERY SHORT ANSWER QUESTIONS (Understanding)|12 Videos

  • COMPANY ACCOUNTS - ISSUE OF SHARES

    DK GOEL|Exercise VERY SHORT ANSWER QUESTIONS (Application based)|6 Videos

  • COMPANY ACCOUNTS - ISSUE OF SHARES

    DK GOEL|Exercise MULTIPLE CHOICE QUESTIONS|23 Videos

  • COMMON SIZE STATEMENTS

    DK GOEL|Exercise Multiple Choice Questions|14 Videos

  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Problem Solution|3 Videos

Similar Questions

Explore conceptually related problems

Explain in detail the types of debentures a company can issue.

Explain different types of preference share which can be issued by a company.

A man has Rs. 1500 to purchase two types of shares of two different companies s_(1) and s_(2) . Markedt price of one share of s_(1) is Rs. 180 and s_(2) is Rs. 120. He wishes to purchase a maximum of ten shares only. If one share of type s_(1) gives a yield of Rs. 11 and of type s_(2) yields Rs. 8 then how much shares of each type must be purchased to get maximum profit? And what will be the maximum profit?

Ganesh Steel Ltd.' is a large and credit-worthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money market. (a) Name the money-market instrument the company can use for the above purpose. (b) What is the duration for which the company can get funds through this instrument ? (c) State any other purpose for which this instrument can be used.

Ganesh Steel Ltd.' is a large and creditworthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech mechines. Since the investement is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation csot. To meet the expenses of floatation cost the company decides to tap the money-market. (a) Name and explain the money-market instrument the company can use for the above purpose. (b) What is the duration for which the company can get funds through this instrument? (c) State any other purpose for which this instrument can be used.

Shreya Ltd. is a large credit-worthy company manufacturing automobiles for the India market. It now wants to cater to the other market and decided to invest in new machines. For this, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money market. (a) Name and discuss the money market insutrument the company can use for the above purpose. (b) What is the duration for which the company can get funds through this instrument ? (c) State any other purpose for which this instrument can be used.