PICT School of Information Technology & Management

PGDBM Program Year I Trimester 1

Subject: Fundamentals of Finance
Questions for validation of learning:
Topic: Equity
1. Wat do you understand by te term !sare capital"#
$. Wat is meant by !Equity"#
%. Wat is face value of a sare#
&. 're tere any oter names for te same#
(. Wy is it important#
). Wat can be te different face values of equity sare#
*. Wat do you understand by te term !autori+ed sare capital"# ,s tere a formula for
determining it# -oes te si+e of !autori+ed sare capital" influence te face value#
.. 're tere oter /ey terms associated 0it !sare capital"# E1plain teir meanings.
2. ,s tere anoter /ind of sare in a limited company# Wat is it called#
13. Wat are te primary differences bet0een tese t0o /inds of sares#
11. Wat is te difference bet0een a private limited and a public limited company from
te point of vie0 of equity sare capital#
1$. ,s tere any difference bet0een face value of sares issued by a listed company and
tose issued by unlisted companies#
1%. Wat do you understand by te term !issue price"# 4an it be different from !face
value"#
1&. -o you /no0 of any e1ample for issue of equity sare at a discount#
1(. 4an equity sare be redeemed 5paid bac/ to te investors6#
1). Wat do you get as return on investment in equity sares#
1*. ,s tere any difference bet0een tis return and return on debt called !interest"#
1.. ,s tere any ceiling tat is prescribed by any statute in ,ndia on 0at you can get on
your investment in equity sare capital#
12. Wo decides on te return tat you get as investor in equity sares# 7 8oard of
-irectors or te 9eneral 8ody of equity sareolders#
$3. 4an you cange te face value of an equity sare# 7 :educe it or increase it# Wo
as te autority#
$1. Ta/e for e1ample; :eliance ,ndustries <imited. Te promoters are te 'mbanis. =ou
are a sareolder of :eliance ,ndustries <imited. ,s tere any difference bet0een you
and 'mbani as equity sareolders#
$$. Wat do you understand by te term !bonus issue"#
$%. Wat do you understand by te term !rigts issue"#
$&. Wat are te oter values associated 0it an equity sare# E1plain teir importance
or significance. >o0 does one determine tese values#