Select the correct answer from the options given below and rewrite the statements.
1. ……………… refers to capital made up of Equity and preference shares
a) Share capital b) Debt capital c) Reserve fund
Ans:- a) Share capital
2. ……………… capital refers to maximum capital a company can raise by issuing shares.
a) Issued b) Authorised c) Paid up
Ans:- b) Authorised
3. ……………… means shares are offered to the public.
a) Rights Issue b) Private Placement c) Public Issue
Ans:- Public Issue
4. Under ……………… method, issue price of shares is based on bidding.
a) Book Building b) Fixed Price c) Bonus Issue
Ans:- a) Book Building
5. In ………………, shares of a company are offered to the public for the first time.
a) Further Public Offer b) Initial Public Offer c) Public Offer
Ans:- b) Initial Public Offer
6. ……………… is offered to existing equity shareholders.
a) IPO b) ESOS c) Rights Issue
Ans:- c) Rights Issue
7. Bonus shares are issued free of cost to ……………… .
a) existing Equity shareholders b) existing employees c) Directors
Ans:- a) existing Equity shareholders
8. ……………… are offered to permanent employees, Directors and Officers of a company.
a) Bonus Shares b) Rights Issue c) ESOS
Ans:- c) ESOS
9. Under ………….., a company offers its securities to a select group of persons not exceeding
200.
a) Private Placement b) IPO c) Public Offer
Ans:- a) Private Placement
10. The ……………… have the power to allot shares.
a) Director b) Board of Directors c) Company Secretary
Ans:- b) Board of Directors
11. Letter of ……………… is sent to applicants who have been given shares by the company.
a) Regret b) Renunciation c) Allotment
Ans:- c) Allotment
12. ……………… is a proof of title to Shares.
a) Share Certificate b) Register of Member c) Letter of Allotment
ansn:- a) Share Certificate
13. The gap between two calls should not be less than ……………… .
a) 14 days b) One month c) 21 days
Ans:- b) One month
14. Company can ……………… shares on non-payment of calls.
a) forfeit b) surrender c) allot
Ans:- a) forfeit
15. Voluntarily giving away one’s share to another person is called as ……………… of shares.
a) Transfer b) Transmission c) Surrender
ans:- a) Transfer
16. ……………… of shares takes place due to operation of law.
a) Forfeiture b) Allotment c) Transmission
Ans:- c) Transmission