0
What else can I help you with?
Difference between share and share capital?
Shares are units into which the capital of a company is divided. Share Capital is the total amount of money contributed by the shareholders of the company, over which they will have claim at the time of liquidation of the company.
What is nominal share capital?
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.
What are corporate profits distributed to shareholders as?
Corporate profits distributed to shareholders are typically given in the form of dividends. Dividends represent a portion of the company's earnings that is returned to shareholders, often paid on a regular basis, such as quarterly or annually. Additionally, shareholders may benefit from capital gains, which occur when the value of their shares increases. Both dividends and capital gains are key ways investors earn returns on their investments in a company.
Can you explain the difference between capital gains and dividends?
Capital gains are profits made from the sale of an investment or asset, while dividends are payments made by a company to its shareholders from its earnings. In simple terms, capital gains come from selling something for more than you paid for it, while dividends are a share of a company's profits distributed to its shareholders.
How A company gets money from shareholders when?
How A company gets money from shareholders when?
Are shareholders owners of company?
The company is not always the property of the shareholders. The company is in part the property of the shareholders if it is a publicly traded company.
A company is effectively leveraging when?
The return on shareholders' equity exceeds the return on assets
Is capital gain a corporate action?
Yes it is a Corporate Action.The capital gains distribution is the process utilized to remit the proper amount of net gains on capital investments to each of the investment company shareholders that are eligible for a return on their investment.
What is mean by a members of a company?
Members of a company are the shareholders of that company. They are the people who own the company, as they lend their money as the capital for the business.
Difference between share and share capital?
Shares are units into which the capital of a company is divided. Share Capital is the total amount of money contributed by the shareholders of the company, over which they will have claim at the time of liquidation of the company.
What is nominal share capital?
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.
What is nominal share?
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.
What are the advantages of internal capital reduction?
Internal capital reduction refers to a company's decision to decrease its capital without reducing its assets. One advantage of this strategy is that it can improve the company's financial ratios, such as return on equity, by reducing the denominator (total equity). It can also provide tax benefits by allowing the company to distribute excess capital to shareholders as a return of capital, which is typically taxed at a lower rate than dividends. Additionally, internal capital reduction can help optimize the company's capital structure and potentially increase shareholder value.
Why is maximizing shareholders wealth a good philosophy?
Shareholders are actually owners of the company in which they hold stock in. All decisions should be made with the consideration of maximizing shareholders wealth. It is not to just increase the size of the company or to see that executives get rich but rather to maximize the return for shareholders/owners of the corporation.
What is the definition of dividend?
In finance, the word "dividend" refers to a portion of money that is paid at regular individuals by a company to its shareholders. In this way, the shareholders gain a piece of the company's profits.
What is paidup capital?
The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.
What is paid capital?
The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.
