Which of These Is a Way in Which a Company

question 20

Multiple Choice

Which of these is a way in which a company can raise capital through the issue of shares?

• A) Dividend reinvestment plan
• B) Employee share plan
• C) Rights issue
• D) All of the above

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest held by stockholders.

Common Stock

A type of corporate equity security that represents a share of ownership in a corporation, conferring voting rights and a portion of the profits (dividends).

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing shareholders' equity.