1.
Shares in a public limited company can be
legally to another person.
2.
A public limited company can commence business when the register of companies has issued a
.
3.
The memorandum of association is the
of the company.
4.
Unsecured debentures are also known as
debentures.
5.
Unclaimed dividends constitute a
of the company.
6.
Discount on issue of shares is recorded on the
of a companys balance sheet.
7.
A discount on a share issue is classified as
of loss.
8.
Premium on a share issue is classified as
profit.
9.
Profit on shares is called a
.
10.
Expenses incurred to form a company are known as
expenses.
For many companies, dividends and bonus issues are used as means of redistributing profits among shareholders. In a dividend issue, the company gives out extra money to shareholders from its net profits; in a bonus issue, the shareholders are given free shares. A bonus share is an additional share given to current shareholders for no cost based on the number of shares owned. These shares are a companys accumulated earnings, which can come from profits or a companys stock that was purchased. A company may distribute its earnings among four types of dividends: cash, stock, hybrid and property. Your monthly brokerage statement will show each type of dividend as it becomes available. Dividends are not free money although in a yield-starved economy, many stock investors look to their cash dividends as a source of income. Through the offer of bonus shares, a company's total number of outstanding shares increases, but each share's value decreases. The total market value remains unchanged. 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.
Dividend and Bonus: Fill In the Blanks FAQs
Dividend and Bonus: Fill In the Blanks
