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Section 77A read with Section 77B(2)permits a company to buy its own shares or other securities out of:-

(i) its free reserves.

(ii) the securities premium account.

(iii) the proceeds of any shares or other specified securities.

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11y ago

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What is the difference between a bondholder and a stockholder?

Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.


What is a vested share?

A vested share is a share in a company stock that is fully owned by an employee. Most people who own employee stock become vested after a few years of service with the company.


Can company buy its own share?

Yes, the company can buy shares and then 'retire' them. Essentially, this lowers the count of outstanding shares for people to buy, which is a good thing. It will increase the percentage ownership of existing shareholders, and it will increase the earnings per share. Increased earnings per share may allow a company to increase its dividends to shareholders, if the company pays these out. The executives of a company (insiders) may also purchase shares in their own company, and this is legal to do, assuming they did not have 'material information' that was not known to the public. This is also a good thing since it shows that the company members think the stock price is a good value, and that they are motivated for the company to succeed.


What is a joint stock company?

One who acquires ownership by buying shares which are the wealth of the company. Prophets depend on success and share of stocks. If company fails, one is responsible just for his own share.


What does a fund consist of?

A mutual fund consists of shares of company stocks. Investors can buy shares of funds and so own a small part of more stocks. There are other types of funds: bond funds, real estate funds, money market funds for example.

Related Questions

Which of the the following is not the source of funds profit after taxshare capital issuedsale of investmentsshare buyback?

The source of funds typically refers to the means by which a company raises capital. Among the options provided, "share buyback" is not a source of funds; rather, it represents a use of funds as the company repurchases its own shares. In contrast, profit after tax, share capital issued, and sales of investments are all ways through which a company can generate or raise funds.


What is the difference between a bondholder and a stockholder?

Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.


Is treasury stock included in common equity?

Treasury stock is contra to share capital account as it is those shares which company purchase from own capital to reduce the share capital amount.


What does a person who buys a stock own?

They own a share of a company.


What is the meaning of single share?

If a company is made up of 100 shares, and that company is worth £100, then one share will be worth £1. If you own 1 share then you own 1% of said company. If the companies value increases to £150 then you will still own 1% of the company, and the value of your share will increase to £1.50. This assumes that the company does not "issue" any additional shares. If we go back to the first instance when the company is worth £100 with 100 shares and you own one share, if the company issues another 100 shares, then your 1 share will now be worth £0.50.


If you own a share of a company are you part owner?

Yes


Can a company increase its share capital with its own profit?

No


What is a share with reference to a company?

It is essentially buying your "share" of the company. You're buying a small percent of the country. Majority shareholders own a majority of the company.


Do the sister wives each have their own money to do with as they please?

Some of them work but they all share the funds for the family.


What is owner's funds?

Owners Funds is when the owner of a company (buisness) invests his own money into the buisness.


When a company eats up its own market share what is it called?

nationalisation


What is a vested share?

A vested share is a share in a company stock that is fully owned by an employee. Most people who own employee stock become vested after a few years of service with the company.