In Which Situation(s)may Shares Be Issued in Return for Something

question 19

Multiple Choice

In which situation(s) may shares be issued in return for something other than cash?

• A) Shares can be issued in return for a capital contribution in kind.
• B) New shares may be issued as the result of a capitalization of reserves.
• C) New shares may be the result of the conversion by a creditor of their claim into shares.
• D) All of these

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Definitions:

Laspeyres Price Index

A consumer price index used to measure the change over time in the total cost of purchasing a fixed basket of goods and services.

Per Capita Income

The average income earned per person in a particular area or country, calculated by dividing the area's total income by its total population.

Laspeyres Price Index

A price index that measures the change in the price level of a basket of goods and services, using the quantities of the base period as weights.

Base Year

A specific year against which economic growth or other variables are measured and compared.