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Shareholders funds (also known as Equity) represent the book value of the company.
For example, if a company has assets of $10MM and liabilities of $6MM, the book value of the company is $10MM - $6MM = $4MM.
Book value per share is computed by dividing the book value of the company by the number of outstanding shares.
For example, if the number of outstanding shares is 400,000, the book value per share is $10.
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What is proposed dividend?
It is a way in which a company shares its profit to its shareholders. It is given as a percentage of the base / face value of the share. Each shareholder gets an amount depending upon the number of shares it has. The amount is decided on the Annual General Meeting (AGM) of the company. It is a current liability for a company as it has to be paid by the company during the same accounting period.
What are bonus shares?
Concept: When a company has accumulated large reserves which cannot be disrtibuted as dividents in cash either due to legal restrictions or accounting principle f prudence, it converts this surplus capital & divides the capital among the existing shareholders according to the share capital held by issuing fully paid bonus shares. NOTEWORTHY POINTS: 1. The share of bonus shares soes not constitute a source of income to the company or the financial position of the company remains the same. 2. Issue of bonus shares is not for sistribution of profits among the shareholders and hence not for income tax purpose. 3. Are not a gift. 4. The issue of bonus share does not improve the well being or financial position of the shareholders even though no cash is paid by them to acwire these shares...
How do you make money off shares?
There are two types of shares, private and public.Private shares are ones that are not traded but are received as rewards for direct investment. To profit, you can sell your shares to a third party for a higher price. Or , as an equity shareholder, you may receive part of the profit of the company. You would then make money by simply owning the shares.Public shares generally work the same way but rather than obtaining them from direct investment, you obtain them from other shareholders on a stock market. Then you can either hold them for dividends, or profit from trading them.
What are the differences between investor and share holder?
they are both the same. An investor may have been in early before shares were public but they still own shares. An investor is someone who uses his money to make more money. There are about a billion kinds of investments--you could loan money to buy cars, purchase investment properties, buy bonds, whatever. Shareholders are investors who buy stocks.
How are mutual funds and single stocks the same?
They are not the same.
What is top-up placement of shares?
When principal shareholders lend some of their shares to raise funds and afterwards buy those same shares back for the same price it is called top-up placement. This is done quite often in private investments.
What are the disadvantages of preference shares?
One disadvantage of preference shares is that they have limited voting rights. Preference shareholders typically have the right to vote only on matters that directly affect their rights, such as changes to the dividend policy or the issuance of additional preference shares. Another disadvantage is that preference shareholders do not have the same potential for capital appreciation as common shareholders. In case of liquidation, common shareholders are paid after all debt holders and preference shareholders are paid, which means preference shareholders may not receive the full value of their investment.
What would be the total shareholders return if all the investors of a company are using the Dividend ReInvestment Plan -meaning that they don't get their dividends in cash but in new shares?
Dividend Re-Investment is available only for Mutual funds not stocks. The number of stocks outstanding for any company would remain the same until and unless the company declares bonus shares or announces a stock split. Otherwise the no. of shares remains the same. Stock holders cannot ask for dividend re-investment. They can only expect cash payments of dividends.
What shares the same element as isotopes?
The atomic number (number of protons) is identical.
What is proposed dividend?
It is a way in which a company shares its profit to its shareholders. It is given as a percentage of the base / face value of the share. Each shareholder gets an amount depending upon the number of shares it has. The amount is decided on the Annual General Meeting (AGM) of the company. It is a current liability for a company as it has to be paid by the company during the same accounting period.
Difference between amalgamation and external reconstruction?
Difference between Amalgamation and ReconstructionDifference between Amalgamation and ReconstructionThe difference between amalgamation and reconstruction is that amalgamation involves the blending of two or more different concerns, and not merely the continuance of one concern; reconstruction implies the carrying on of an existing business in some altered form, so that persons interested in the business may remain substantially the same.(b) Dissenting ShareholderIn relation to a take-over bid, 'dissenting shareholder' means a shareholder who has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract [Sec. 395(5)].Thus, a shareholder can be called a 'dissenting shareholder' when he has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract.ReconstructionlAmalgamationby Sale of Shares [Section 395]Sale of shares is the simplest process of amalgamation or take-over. It involves take-over without following the Court procedure under Sections 391 and 394. Shares are sold and registered in the name of the purchasing company or on its behalf. The selling shareholders receive either compensation or shares in the acquiring company. In case certain shareholders dissent, section 395 contains provisions for the compulsory acquisition by the transferee company of shares of the dissenting minority. The shares may be acquired on the same terms on which the shares of the approving shareholders are to be transferred to it. This will prevent the minority shareholders from demanding too high a price for their shares.Secti0!l 395 lays down as follows:1. Where the transferee company has offered to acquire the shares or any class of shares of the transferor company, the scheme or contract embodying such offer has to be approved by the shareholders concerned within four months. The approval must be given by the holders of not less than 9 /lOths in value of the shares whose transfer is involved. In computing 9/10ths value of shares, the shares already held by the transferee company or its nominee or subsidiary are excluded.2. If the offer is approved, the transferee company may, at any time within two months of the expiry of the said four months, give a notice to the dissenting shareholders that it desires to acquire their shares. The transferee company is entitled and bound to acquire the shares of dissenting shareholders on the same terms on which the shares of approving shareholders were approved unless on the application of the dissenti~$ shareholders within one month of such notice, the Court orders otherwise.3. If the transferee company already holds in the transferor company shares ofthe class whose transfer is involved, to a value more than l/lOth of the total. (1983J 140 ITR (St.) 2... The transferee company need not wait for the expiry period of four months for serving notice on thedissentient shareholders to acquire the shares-Western Manufacturing (Reading) Ltd., In re [1955J 3 AI
Is shareholders fund same as total equity?
Yes shareholders fund is same as equity and these are different names of same thing.
What are bonus shares?
Concept: When a company has accumulated large reserves which cannot be disrtibuted as dividents in cash either due to legal restrictions or accounting principle f prudence, it converts this surplus capital & divides the capital among the existing shareholders according to the share capital held by issuing fully paid bonus shares. NOTEWORTHY POINTS: 1. The share of bonus shares soes not constitute a source of income to the company or the financial position of the company remains the same. 2. Issue of bonus shares is not for sistribution of profits among the shareholders and hence not for income tax purpose. 3. Are not a gift. 4. The issue of bonus share does not improve the well being or financial position of the shareholders even though no cash is paid by them to acwire these shares...
What is difference between related company and fellow subsidiary?
A related company is a company who has similar or the same management or key personnel i.e. they share the same directors etc.A fellow subsidiary is a company who shares the same Shareholders as another company i.e Holding Company A owns 100% shares in company A and company B. Company A & B are then Fellow Subsidiaries.
What are bonues?
Concept: When a company has accumulated large reserves which cannot be disrtibuted as dividents in cash either due to legal restrictions or accounting principle f prudence, it converts this surplus capital & divides the capital among the existing shareholders according to the share capital held by issuing fully paid bonus shares. NOTEWORTHY POINTS: 1. The share of bonus shares soes not constitute a source of income to the company or the financial position of the company remains the same. 2. Issue of bonus shares is not for sistribution of profits among the shareholders and hence not for income tax purpose. 3. Are not a gift. 4. The issue of bonus share does not improve the well being or financial position of the shareholders even though no cash is paid by them to acwire these shares...
How do mutual funds measure up vs. other investments?
Mutual funds offer several advantages over investing in individual stocks. For example, the transaction costs are divided among all the mutual fund shareholders, which allows for cost-effective diversification. Investors may also benefit by having a third party (professional fund managers) apply expertise and dedicate time to manage and research investment options, although there is dispute over whether professional fund managers can, on average, outperform simple index funds that mimic public indexes. Many mutual funds offer more than one class of shares. For example, you may have seen a fund that offers "Class A" and "Class B" shares. Each class will invest in the same pool (or investment portfolio) of securities and will have the same investment objectives and policies. But each class will have different shareholder services and/or distribution arrangements with different fees and expenses. A front-end load or sales charge is a commission paid to a broker by a mutual fund when shares are purchased,
What is a number and 30 that shares the same greatest common factor 6?
The GCF of 6 and 30 is 6.
