Practicing Success
Practicing Success
CUET Preparation Today
| How a Company may issue the shares? |
By Private Placement of Shares By Public Subscription of Shares For Consideration other than cash All of the above |
| All of the above |
| Share Capital of a company is collected by issuing shares to either a select group of persons through the route of private placements and/or offered to the public for subscription. Thus, the issue of shares is basic to the capital of a company. Shares are issued either for cash or for consideration other than cash, the former being more common. Shares are said to be issued for consideration other than cash when a company purchases business, or some asset/assets, and the vendors have agreed to receive payment in the form of fully paid shares of a company. |
