08 Dec 2020 10:57 am
Chapter 3, Issue of Shares, SP, secretarial practice, hsc, Maharashtra, board, new edition, ebalbharathi, solution,
Correct the underlined word and rewrite the following sentence.
1.Issued capital is the maximum capital which a company can raise by issuing shares.
Authorised capital is the maximum capital which a company can raise by issuing shares
2.Under Fixed price issue method, the price of shares is fixed through bidding process
One line Answer
Under book building method the price of shares is fixed through bidding process.
3.FPO refers to offering of shares to the public for the first time.
IPO refers to offering of shares to the public for the first time.
4.Only fully paid up shares can be forfeited.
Only partly paid shares can be forfeited.
5.Bonus shares are offered to existing employees of a company.
Bonus shares are offered to existing equity shareholders of a company.
6.Company enters into an underwriting agreement with the shareholders.
One line Answer
Company enters into an underwriting agreement with the underwriters.
7.Letter of Allotment is sent to applicants when no shares are allotted to them.
One line Answer
Letter of Regret is sent to applicants when no shares are allotted to them.
8.Duplicate share certificate must be issued within one month from date of application.
Duplicate share certificate must be issued within three months from date of application
9.Call money cannot exceed 5% of nominal value of shares.
Call money cannot exceed 25% of nominal value of shares.