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----- is known as promoters buy back
(a) Sale of shares to employees
(b) sale of shares to public
(c) Sale of shares to friends & relatives
(d) None of these
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Explanation:
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In this question, we need to answer who are known as promoters' buyback.
- Option A is the correct answer i.e. Sale of shares to employees.
- Sale of shares to employees is known as promoter's buyback.
- Sale of shares to the public is not known as promoters' buyback because these are the shares issued to the public to which they can subscribe.
- Share is the unit used as a fund that public companies issue.
- When a company needs huge funds they issue shares to gather the fund and the public subscribe to them.
- The fund which is being collected is known as share capital.
- Share is of two types Equity Share and Preference Share.
- Equity Shares are those shares that are also the owners of the shares and they hold some rights.
- Preference shares are the shares that get interest as mentioned and they hold some preferential rights.
- While winding up the company preference shares are given priority.
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