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Company's usually issue stocks to generate capital for their business and expansion plans. When a company goes public it sells its shares to the public and gets money in return. This way they raise capital. After a stock gets listed in a notified stock exchange people trade the stock in the markets and the price of the stock may go up or down based on the way the company's business is developing
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Advantages and disadvantages of rights issue?
Some advantages to rights issues include the fact that share holders are able to buy additional shares at a lower rate, and by selling these shares, the company is able to pay off some of their debt. Disadvantages of rights issues include stocks that have a reduced value.
When company issues shares at a premium the amount of premium may be received by the company?
yes,the company can receive the amount of premium.
Is share dilution legal?
Share dilution is a legal practice that occurs when a company issues additional shares, which can reduce the ownership percentage of existing shareholders. It is a common strategy used by companies to raise capital, but it can impact the value of existing shares.
Why shares outstanding sometimes goes up?
Because the company issues more shares or does a split, issuing several new shares for in place of one old share. The latter is a way to reduce the market price per share, which might be desirable so as to attract investors who could not affort a very high priced stock.
What are the rights of stockholders?
Stockholders have the right to vote on corporate-wide issues. They also own a portion of the corporation and may buy, sell, and trade their shares.
Do 13 shares of American Drug Company have any value today?
depends what drug comapany but it should have some substantial value due to the cost of drugs today
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
When a comapany pays a bill the cash account WILL BE?
Debited.
What comapany has a white H with a red underline?
Thq
What is financing activities?
Issues of shares, repayment of loan, sale of an investment.
What do you mean by number of outstanding shares?
Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!
What are the subsequent issues of shares of a company called after the IPO?
They are called Secondary Offering.
What is the difference between Sainsbury's and Oxfam?
oxfam is a charitity and sainsburys in a ltd comapany
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.
What is Share Allotment?
The process of allocating shares between shareholders usually pro rata or according to some prior agreement. The allotment may have conditions, which must be satisfied before the shares are issued, eg payment for them. This precedes the actual issue of shares.
What is issue of shares?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
Can a comapany that repossessed your car hold your prescription from you unless you pay 100 storage fee?
no
