Fill in the blanks with the correct option:
1. What is Dematerialization?
2. What is dividend?
3. Who has right to recommend dividend?
4. What is share certificate?
5. What is bond?
Answers
Answer:
1. Dematerialization (DEMAT) is the move from physical certificates to electronic bookkeeping. DEMAT accounts are required by some trading institutions due to the fact they are the most accurate form of record keeping. Dematerialization was designed to offer more security, as well as increased speed, to financial trades.
2. Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. ... Dividend is usually a part of the profit that the company shares with its shareholders.
3.dividend rights issue is when a public company sells new shares in return for cash. Shares are usually offered at a discount price within a set time frame to encourage existing shareholders to take up the rights. They have first refusal for the shares.
4.share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the number of shares indicated. A share certificate is also referred to as a stock certificate.