Issuance of Shares and Debentures Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. What is a share?

2. Describe the types of shares that exist.

3. Explain the following:
1. Ordinary shares
2. Preference shares
3. Deferred shares

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. Share issued at par
2. Share issued at premium
3. Share issued at discount

Frequently Asked Questions

What is the process for issuing Shares and Debentures?

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.

What are the risks associated with issuing shares and Debentures?

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.

What are the risks associated with issuing shares and Debentures?

What are the risks associated with issuing shares and Debentures?

What are the different types of shares and Debentures?

The most common types of shares and Debentures include common stock, preferred stock, and bonds.

How do I know if a company is registered to issue shares and Debentures?

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, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

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®), 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, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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