Put Bonds Bonds which can be redeemed before maturity at specified intervals at full face value. Prudence Concept Accounting concept that requires recording (recognizing) the expenses and liabilities as soon as possible, but the revenues only when they are realized or assured. It implies that only that method of determining asset value or net income which yields the lesser … [Read more...]
preference shares and allotments
Preference Shares Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Like common stock, preference shares represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common … [Read more...]
perfect competition and market analysis
Penny Shares Shares with a very low market price, often bought by small investors because they are low – priced, a large number can be acquired, and even a small price rise represents substantial price appreciation, e.g., if a three – rupee share rises to five rupees, the capital, appreciation is 66.6%. Investors, who buy these, believe that a sufficiently low point has been … [Read more...]
paid up capital and shares
Paid-up Capital paid up capital is the Capital acquired by selling shares to investors, as distinguished from capital accumulated from earnings or from secured or unsecured loans. The total amount of shareholder capital that has been paid in full by shareholders. Paid-up Share A share whose issue price has been paid in full. The buyer then has to respond to subsequent … [Read more...]
overcapitalization and profitability
Overcapitalization When a company has too much capital for the needs of its business. You might think that more capital is always better, but this isn't the case. If a business has more money than it can work with, it will be burdened with high interest charges and/or dividend payments. To reduce overcapitalization a company can repay its debt or do a share buyback. Having … [Read more...]