1.
Ordinary shares are also called
.
2.
Share discounts are shown as separate items on the
side of the balance sheet.
3.
Calls in arrears are
when any installment is not received.
4.
The credit balance of forfeited shares must appear as a separate item on the
side of the balance sheet.
5.
Deferred shares are also called
.
6.
Naked debentures are also referred to as
.
7.
Corporations issue
to raise capital.
8.
When shares are issued to promoters in consideration of their services,
is debited.
9.
If the issued shares are under-subscribed, the deficiency is made up by
.
10.
When bonus shares are issued, the share capital of the corporation
.
Issuance of Shares and Debentures: Fill In the Blanks FAQs
Equity Shares (also known as stocks or equities) are a main source of financing for any corporation. Investors have rights to vote, share in profits, and claim on assets.
The terms of deferred shares vary by company. For example, some companies only pay dividends on deferred shares after all other classes of shares have been paid dividends, and other companies only pay dividends on deferred shares after a certain date or event.
A Debenture is a type of investment instrument issued by a business or other organization. It is a form of debt and is accounted for as such on the company's balance sheet.
Shares are owned by the company, while Debentures are borrowed by the company.
Debentures, unlike stocks, are generally considered safer investments than stocks because their value is not as easily manipulated.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
