1.
What is a share?
2.
Describe the types of shares that exist.
3.
Explain the following:
4.
What is a dividend?
5.
What is an underwriter?
6.
What is a debenture?
7.
What are the different types of debentures?
8.
What does undersubscription mean?
9.
What is oversubscription?
10.
What is a debenture stock?
11.
What are the different types of debentures?
12.
Name four features of debentures.
13.
What is meant by the transmission of shares?
14.
Explain the following terms:
1. Ordinary shares
2. Preference shares
3. Deferred shares
1. Share issued at par
2. Share issued at premium
3. Share issued at discount
Issuance of Shares and Debentures Q&A FAQs
The process for issuing shares and Debentures usually involves filing a registration statement with the SEC, which provides detailed information about the company and the securities being offered. The SEC then reviews the registration statement to make sure it complies with all applicable laws and regulations, and after doing so, will declare the registration statement "effective." This means that the company may then offer and sell the securities to the public.
There are several benefits associated with issuing shares and Debentures, including: (1) increased capitalization and liquidity; (2) improved access to capital markets; and (3) enhanced corporate governance.
There are several risks associated with issuing shares and Debentures, including: (1) the possibility that the company may not be able to repay the principal or interest on the securities; and (2) the potential for dilution of existing shareholders' interests.
The most common types of shares and Debentures include common stock, preferred stock, and bonds.
The SEC maintains a database of all companies that are registered to issue securities, which can be accessed on the SEC's website at www.sec.gov.
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.
