Correct the underlined word/s and rewrite the following sentences.

1. Dividend is recommended by shareholders.
Ans: Dividend is recommended by Board of Directors.

2. The person who purchases shares of the company is called Depositor.
Ans: The person who purchases shares of the company is called Shareholder.

3. Bonus shares are issued as a free gift to the preference shareholders.
Ans: Bonus shares are issued as a free gift to the Equity shareholders .

4. Payment of dividend must be made within 21 days of its declaration.
Ans: Payment of dividend must be made within 30 days of its declaration.

5. A company must issue the Share Certificate within three months of allotment of shares.
Ans:  A company must issue the Share Certificate within Two months of allotment of shares.