Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Stock Split and Reverse Split
This is whereas a block of shares is broken down into smaller units or shares hence the number of ordinary shares rises and their respective par value reduce at the stock split factor. Stock split is meant to make the shares of a company more affordable through low income investors and increase their liquidity in the market.
Illustration
ABC Company has 1000 ordinary shares of Sh.20 par value and a split of 1:4 that is one stock is split into 4. The par value is divided via 4.
1000 stocks x 4 = 4000 shares
par value = 40/5
= Sh.5
Ordinary share capital = 4000 x 5 = Shs.20,000
A reverse split is the opposite of stock split and involves consolidation of shares into bigger units thereby increasing the par value of the shares. It is meant to attract high income clientele shareholders. As like incase of 20,000 shares @ Shs.20 par, they can be consolidated into 10,000 shares of Shs.40 par. That is (20,000 x ½) = 10,000 and Sh.20 = x 2 = 40/=
Secondary Markets - Financial Markets Economic Benefits or Role of Secondary Markets in the Economy are as: 1. It provides people a chance to buy shares therefore distribut
John has just retired & she is running out of cash. Her finanical planner advises her to do reverse mortage to improve her standard of living. The current market value of her self
Define the term - Right Issues If an existing company intends to raise extra funds, it can do so by borrowing or b issuing new shares. One of the most general methods for a
Advantage of Bill - Source of Finance Advantages of necessitating a Bill as a Source of Finance They are a faster means of raising finance whether drawer is credible.
Inventory Management - Supply Chain Management Determination of the best ordering policy in a manufacturing organisation In a manufacturing organisation, procurement may ha
J inherited 30000 & decides to open a hair salon.make arrangements 1/4/1016 commits 10000 to the business Opens an a/c under j hair salon What will be the amount under capital in
Executive Share Options Plans In a share option format, selected staff can be provided a number of share alternatives, each of which that provides the holder the right after a
Marbela Corporation's stock had a required return of 12.75% last year, when the risk-free rate was 6.4% and the market risk premium was 5.5%. Now suppose the market risk premium d
Liquidity Preference Theory This theory states that short term bonds are extremely favorable than long term bonds for two (2) purposes. 1. Investors usually prefer short te
Disadvantages of Overdraft Finance A. It is expensive as the interest rates of overdrafts are much higher than bank rates. B. The employ of this finance is an indication of
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd