State whether the following statements are true or false.
1. Equity share capital is known as venture capital.
Ans: True
2. Equity shareholders enjoy fixed rate of dividend.
Ans: False
3. Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Ans: True
4. Debenture holders have right to vote at general meeting of the company.
Ans: False
5. Bond holders are owners of the company.
Ans: False
6. Depository bank stores the shares on behalf of GDR holder.
Ans: True
7. Financial institutions underwrite the issue of securities.
Ans: True
8. Cash credit is given against hypothecation of goods or any security.
Ans: True
9. Trade credit is major source of long term finance.
Ans: False
Ans: True
2. Equity shareholders enjoy fixed rate of dividend.
Ans: False
3. Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Ans: True
4. Debenture holders have right to vote at general meeting of the company.
Ans: False
5. Bond holders are owners of the company.
Ans: False
6. Depository bank stores the shares on behalf of GDR holder.
Ans: True
7. Financial institutions underwrite the issue of securities.
Ans: True
8. Cash credit is given against hypothecation of goods or any security.
Ans: True
9. Trade credit is major source of long term finance.
Ans: False