Minimum subscription of a joint stock company
Minimum subscription is the term which is used to represent the amount of the issue which has to be subscribed or else the shares can’t be issued if it is not being subscribed. Company which…
Topics: Stock
Mention the rights and duties of Shareholder
RIGHTS The companies Act gives various rights to the shareholders of a company. The important rights are mentioned below: A shareholder can attend and vote in the general meetings of the company. The shareholder does…
Classify the Stocks
Stocks are usually classified according to their characteristics. Some are classified according to their growth potential in the long run and the others as per their current valuations. Similarly, stocks can also be classified according…
What is Common Stock Ratio?
The common stock ratio measures the proportion of a company’s total capitalization that is comprised of common stock. A high percentage indicates that company management is conservative, obtaining the bulk of the company’s financing through…
What is Equity Capital Market?
The equity capital market term refers to the interactions between entities requiring funding and those financial institutions that can assist with this search. The financial institutions act as facilitators to raise capital on behalf of their…
What is Treasury Stock Method?
The treasury stock method is used to calculate the net increase in shares outstanding if in-the-money options and warrants were to be exercised. This information is included in the calculation of diluted earnings per share.…
What is Reverse Treasury Stock Method?
The reverse treasury stock method is used to calculate the effect of a put option on the diluted earnings per share calculation of a publicly-held entity. Treasury Stock Method is the component of the diluted…
Dividend Coverage Ratio Mathematical Explanation
Dividend Coverage Ratio states the number of times an organization is capable of paying dividends to shareholders from the profits earned during an accounting period. Formula Dividend cover in respect of ordinary share capital may…