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Bookbuilding method: It is the most common method used. Here the companies decide on the price band. The lowest price is reffered to as floor and highest price is reffered as cap. The investors then have the freedom to bid for the number of shares and the price they are willing to pay for it. The actual price is then discovered based on the bids.
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What is the maximum number of shares of stock that a corporation can issue over the life of the charter called?
authorized shares are the maximum number of shares of stock that a corporation can issue.
What is the minimum subscription?
When a company offer shares to the public, they offer many shares, however they set a speific amount to be subsribed by the public in order to issue the shares, otherwise they cannot issue the shares.
For the company who had already have IPO mif they want to issue the new shares are they need to make another IPO?
No. A company can issue an IPO only once. They can issue new shares through bonus shares or through rights issues.
Can a private company issue shares?
no it can't
Can a company issue free shares?
Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!
What is the journal entry of issue of shares?
Debit Cash / bankCredit Shares in share capital of business
Why issue rights issue of shares at a discount?
when shares aree issued at a lower than the face value they are said to be issue of share at discount. the main reason behind issuing share is to attract retailer
Would it be better for a company to issue shares rather than take out a loan to buy out a company?
A Company shall not issue the shares more than that of it's Authorised capital. It may issue the new shares to the old shareholders of the selling company. A company can purchase another company when it (Purchasing Company) is running in profits only. Then there is no necessity to take bank loans or to issue additional shares for procurement.
Can a private limited company issue shares?
no it can't
Meaning of share application?
A request for shares in a SHARE ISSUE(=when shares in a company are sold for the first time)
What is the term for the total number of shares that a corporation may issue under the terms of its charter?
unissued shares
A company with authorized shares of 10M has 9.5M shares issued and outstanding. Can they issue a convertible note that will convert to 1M shares. Ie- can fully diluted shares exceed the Authorized?
no
