Question No 10:
What is Public limited company (plc in UK terminology)?
Answer:
A public limited company is a limited liability company that may sell shares to the public. It can be either an unlisted company, or a listed company on the stock exchange.
Sunday, 26 April 2015
Sunday, 19 April 2015
Cima F2 Exam Question No 9
Question No 9:
What is the Limited by shares?
What is the Limited by shares?
Means that the company has shareholders, and
that the liability of the shareholders to creditors of the company is
limited to the capital originally invested, i.e. the nominal value of
the shares and any premium paid in return for the issue of the shares by
the company. A shareholder's personal assets are thereby protected in
the event of the company's insolvency, but money invested in the company
will be lost.
Monday, 13 April 2015
Cima F2 Exam Question No 8
Question No 8:
What is Private limited company (Ltd in UK terminology)?
A private company limited by shares, usually called a private limited company, has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company
What is Private limited company (Ltd in UK terminology)?
A private company limited by shares, usually called a private limited company, has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company
Friday, 10 April 2015
Cima F2 Exam Question No 7
Question No 7:
What is the Capital markets functions?
Primary function: The primary function of a stock market is to enable companies to raise new finance (either equity or debt). Through the stock market, a company can communicate with a large pool of potential investors, so it is much easier for a company to raise finance in this way, rather than contacting investors individually. Note that in the UK, a company must be a plc before it is allowed to raise finance from the public on the stock market.
Secondary function: The secondary function of a stock market is to enable investors to sell their investments to other investors. A listed company's shares are therefore more marketable than an unlisted company's, which means that they tend to be more attractive to investors
What is the Capital markets functions?
Primary function: The primary function of a stock market is to enable companies to raise new finance (either equity or debt). Through the stock market, a company can communicate with a large pool of potential investors, so it is much easier for a company to raise finance in this way, rather than contacting investors individually. Note that in the UK, a company must be a plc before it is allowed to raise finance from the public on the stock market.
Secondary function: The secondary function of a stock market is to enable investors to sell their investments to other investors. A listed company's shares are therefore more marketable than an unlisted company's, which means that they tend to be more attractive to investors
Sunday, 5 April 2015
Cima F2 Exam Question No 6
Question No 6:
What is Capital markets?
Capital markets (or stock markets) must fulfil both primary and secondary functions.
What is Capital markets?
Capital markets (or stock markets) must fulfil both primary and secondary functions.
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