Question

the sub division of shares does not result in_________ of capital.
a) reduction
b)added
c) compromise
d)none of above​

Answer 1

Answer:

none of the above I think is the right answer....

Answer 2

The sub division of shares does not result in (B)added of capital.

Definition of subdivision of share capital;

Subdivision of share capital also called as stock split. It refers to the company shares of one nominal value decides to split those shares into shares of a smaller nominal value.

Benefits of subdivision of share capital;

• By increasing the number of shares the company can change the structure of its share capital.
• While decreasing the par value each then the individual will get the decreased amount.
• With the decreasing value the number of total shares are increased.
• Shares are subdivided to makes shares seem more affordable to small investors.

Therefore, the subdivision of share capital can be increased in the nominal value whereas decreasing in the par value each.