Select the correct statements related to shares and share capital:(A)…

The correct answer is Option (2) → (B), (C) and (D) only

The statements cover the names of share capital, redemption, ownership and the issue of shares at a discount.

(A) Authorized Share Capital and Nominal Share Capital are different from each other. Incorrect. They are two names for the same capital: the amount stated in the Memorandum of Association, also called Nominal or Registered capital. A statement that sets them against each other is false.

(B) Equity shares cannot be redeemed during the lifetime of the company. Correct. Redemption is a feature of preference shares; equity capital goes back to its holders only when the company is wound up (apart from a buy-back, which is not redemption).

(C) Preference shares are not the real owner of the company. Correct. Control and the residual profit sit with the equity shareholders, while preference holders get a fixed dividend with priority and have limited voting rights.

(D) Equity shares cannot be issued to the public at a discount. Correct. Shares are normally sold at par or above; an issue below face value is barred except in the special cases the law allows.