reduction
increase
sub-division
none of these
Answer is Right!
Answer is Wrong!
The correct answer is: A. reduction
Sub-division of shares is the process of dividing a share into multiple shares of smaller denominations. This does not result in a reduction of the company’s capital, as the total number of shares remains the same. However, it does make the shares more affordable for smaller investors.
Option B is incorrect because sub-division of shares can actually lead to an increase in the company’s capital, if more people are able to buy shares as a result.
Option C is incorrect because sub-division of shares does not involve dividing the company’s capital into smaller pieces.
Option D is the correct answer because it is the only option that does not contradict the statement in the question.