0
These are special shares that you get with ordinary shares from some companies, which they buy back off you at a price instead of paying a dividend.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What are the redeemable preference share and irredeemable preference share?
A redeemable preference share is issued on the terms where they are liable to be redeemed at either a fixed time, or the company's option or at the shareholders option. Non-redeemable or Irredeemable preference shares need not be repaid by the company except on winding up of the company. According to Section 100 of the Companies Act, 1956 : If a company collects the money through redeemable preference shares, this money must be returned on its maturity whether company is liquidated or not. Section 80 of the Companies Act, 1956 lays down some provisions relating to redeemable preference shares : 1. The shares to be redeemed must be fully paid-up. 2. Capital reserves from forfeiture of shares and share premium account are not available for payment of redeemable preference share holders. 3. Its payment will be out of the net profit of the company or amount received on issue of new shares. Company cannot sale amount of asset for redemption of redeemable preference shares.
A company issues 10000 10 preference shares of Rs 100 each redeemable after 10yrs at premium of 5 The cost of issue is Rs 2 per share Calculate the cost of preference capital?
The cost of Preference Capital may be defined as the dividend expected by the preference Shareholders. There are two types of Preference Shares:- 1. Irredeemable 2. Redeemable The first category is a kind of continuous security in the sense that the principal is not to be returned for a long time or is likely to be available till the life of the company. The redeemable preference Shares are issued with a Maturity date so that the Principal will be repaid at some future date. Accordingly, the Cost of Preference Shares is calculated separately for these 2 situations.
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture
What is the secured redeemable non-convertible debenture?
history of secured redeemable non convertible debentures
Is alchemist redeemable preference share safe?
100% you should try to invest in redeemable preference share. because client get bond on investment. no need to wait for long time.Alchemist Redeemable Preference Share visit here for 100% guaranteed investment
What are the Two types of shares?
There are different types of shares available. Some examples include ordinary shares, preferred shares, cumulative preference shares, and redeemable shares.
What are the redeemable preference share and irredeemable preference share?
A redeemable preference share is issued on the terms where they are liable to be redeemed at either a fixed time, or the company's option or at the shareholders option. Non-redeemable or Irredeemable preference shares need not be repaid by the company except on winding up of the company. According to Section 100 of the Companies Act, 1956 : If a company collects the money through redeemable preference shares, this money must be returned on its maturity whether company is liquidated or not. Section 80 of the Companies Act, 1956 lays down some provisions relating to redeemable preference shares : 1. The shares to be redeemed must be fully paid-up. 2. Capital reserves from forfeiture of shares and share premium account are not available for payment of redeemable preference share holders. 3. Its payment will be out of the net profit of the company or amount received on issue of new shares. Company cannot sale amount of asset for redemption of redeemable preference shares.
A company issues 10000 10 preference shares of Rs 100 each redeemable after 10yrs at premium of 5 The cost of issue is Rs 2 per share Calculate the cost of preference capital?
The cost of Preference Capital may be defined as the dividend expected by the preference Shareholders. There are two types of Preference Shares:- 1. Irredeemable 2. Redeemable The first category is a kind of continuous security in the sense that the principal is not to be returned for a long time or is likely to be available till the life of the company. The redeemable preference Shares are issued with a Maturity date so that the Principal will be repaid at some future date. Accordingly, the Cost of Preference Shares is calculated separately for these 2 situations.
What is one sentence with the word redeemable?
This ticket is redeemable at any circus.
What is non convertible redeemable debenture?
history of secured redeemable non convertible debentures
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture
What is redeemable non convertible secured debentures?
history of secured redeemable non convertible debentures
What is the secured redeemable non-convertible debenture?
history of secured redeemable non convertible debentures
What is the explanation for the various types of shares?
Types of shares A company may have many different types of shares that come with different conditions and rights. There are four main types of shares: Ordinary shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the highest risk. Ordinary shareholders are the last to be paid if the company is wound up. Preference shares typically carry a right that gives the holder preferential treatment when annual dividends are distributed to shareholders. Shares in this category receive a fixed dividend, which means that a shareholder would not benefit from an increase in the business' profits. However, usually they have rights to their dividend ahead of ordinary shareholders if the business is in trouble. Also, where a business is wound up, they are likely to be repaid the par or nominal value of shares ahead of ordinary shareholders. Cumulative preference shares give holders the right that, if a dividend cannot be paid one year, it will be carried forward to successive years. Dividends on cumulative preference shares must be paid, despite the earning levels of the business, provided the company has distributable profits. Redeemable shares come with an agreement that the company can buy them back at a future date - this can be at a fixed date or at the choice of the business. A company cannot issue only redeemable shares.
What does redeemable in lawful money at the US treasury or at any federal reserve bank message on the back of older notes mean?
Redeemable maens that you can trade something for another thing.For an example twenty boxtops are redeemable for one toy.
Is alchemist redeemable preference share safe?
100% you should try to invest in redeemable preference share. because client get bond on investment. no need to wait for long time.Alchemist Redeemable Preference Share visit here for 100% guaranteed investment
What is the difference between redeemable and nonredeemable preferred stock?
With non-redeemable preferred stock, a shareholder is unable to convert their stock before the redemption date. In redeemable stock, the company or issuer can buy back stock from a shareholder anytime, at a certain price to retire it.
