[amp_mcq option1=”Issue, Application, Call and Forfeiture” option2=”Application, Call, Forfeiture and Issue” option3=”Call, Issue, Application and Forfeiture” option4=”Forfeiture, Application, Issue and Call” correct=”option1″]
The correct answer is: A. Issue, Application, Call and Forfeiture.
Here is a brief explanation of each option:
- Issue: This is the process of making shares available for purchase. The company will typically issue shares through an initial public offering (IPO), which is when the company’s shares are first offered to the public.
- Application: This is the process of applying to purchase shares in a company. Investors can apply to purchase shares through a broker or directly from the company.
- Call: This is the process of demanding payment from shareholders for the full amount of their shares. The company may call shares if it needs to raise cash or if the shares are trading below their par value.
- Forfeiture: This is the process of taking ownership of shares that have not been paid for. The company may forfeit shares if the shareholder does not pay the call price within a specified time period.
I hope this helps!