Equity Shares and Capital

Both stock dividends and bonus shares represent the issuance of additional shares to existing shareholders without requiring payment, effectively capitalizing a portion of the company's retained earnings.

Equity shareholders are the residual owners of a company. Dividends on equity shares are paid only after preference dividends are met and are not fixed; they depend on the company's profits and board decisions.

Preference shares are entitled to dividends only out of the company's profits. If there are no profits, the company is generally not obligated to pay dividends, unless the shares are cumulative.

The Government has announced amendments to the Securities Contracts (Regulation) Rules on June 04, 2010. The amended rules make it mandatory for all listed companies to have a minimum public shareholding of 25 per cent. Those below this level will have to get there by an annual addition of at least 5 per cent to public holding.

The rules till now had also set the minimum float at 25 per cent, but stock exchanges and the Securities and Exchange Board of India (SEBI) had the power to waive or relax this for public sector undertakings and companies in the information technology, media, entertainment and telecommunications sectors.

It is a part of reserve and surplus.

COGS = opening stock + Purchases - closing stock Let closing stock = X, So opening stock = X + 2X = 3X 85,000 = 3X + 60,000 - X X = closing stock = Rs.12,500 Opening stock is thus Rs.37,500. If you wrongly assume opening stock = 2X, then closing stock = Rs.25,000 and opening stock Rs.75,000.

The reasonable time has passed. So, the offer is valid at the option of investor only.

Gross liability of the venturers = 1, 00, 000*80% = 80, 000 shares Shares underwritten by them = 75, 000*80% = 60,000 shares             Net liability = 80, 000 - 60, 000 = 20,000 shares Net liability can't be 80, 000 - 75, 000 = 5, 000 shares or 1, 00, 000 - 60, 000 = 40, 000 shares

Sweat equity refers to shares issued by a company to its directors or employees at a discount or for consideration other than cash, in recognition of their contribution or intellectual property.

Preference shareholders have priority over equity shareholders regarding the repayment of capital and dividends during the liquidation of a company.

The phrasal verb 'account for' means to constitute or make up a part of a total. It is the correct choice for describing percentages of growth.

The Cash Reserve Ratio (CRR) is a dynamic monetary policy tool. At the time this question was written, the CRR was 5 percent.

The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.

In the joint venture C-Edge Technologies, State Bank of India holds a 51% majority stake, while Tata Consultancy Services holds the remaining 49%.

SENSEX is related with the value of a few selected companies. The number of companies is 30. The Sensex represents the composite value of shares of 30 selected companies traded on BSE. The Nifty represents the composite value of shares of 50 companies traded on NSE.