Answer in one sentence.
1. What is a share ?
Ans: Share is the smallest unit of the capital of the company.
2. What are Equity shares ?
Ans: Equity shares are ordinary shares which are not preference shares. Equity share is a risky capital.
3. What are preference shares ?
Ans: Preference shares are those shares which carry preferential rights to receive dividend and return of capital.
4. What are retained earnings ?
Ans: Retained earnings are the earnings of the company which are retained (reinvested) in the business.
5. What is a debentures ?
Ans : Debenture means acknowledgment of debt. Debenture is a borrowed capital.
6. What is a bond ?
Ans: Bond is an interest bearing certificate issued by the government.
7. In which country can ADR be issued ?
Ans: American Depository Receipt (ADR) can be issued in USA.
8. In which country can GDR be issued ?
Ans: Global Depository Receipt (GDR) can be issued in any country other than USA.
9. What are convertible debentures ?
Ans: The debentures which are converted into equity shares are known as convertible debentures.
10. What are cumulative preference shares ?
Ans: Cumulative preference shares are those shares on which dividend goes on accumulating (adding).