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3 Theory Share Capital Transactions Video Lecture | Commerce & Accountancy Optional Notes for UPSC

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FAQs on 3 Theory Share Capital Transactions Video Lecture - Commerce & Accountancy Optional Notes for UPSC

1. What are the different types of share capital transactions?
Ans. Share capital transactions can include issuing new shares, buying back shares, and transferring shares between shareholders.
2. How does a company raise capital through share transactions?
Ans. Companies can raise capital by issuing new shares to investors in exchange for cash, allowing them to fund projects or operations.
3. What is the significance of share capital transactions for a company?
Ans. Share capital transactions can impact a company's financial health, as they affect the equity and ownership structure of the business.
4. Can share capital transactions impact a company's stock price?
Ans. Yes, significant share capital transactions such as issuing new shares or buying back shares can impact a company's stock price due to changes in the supply and demand for the stock.
5. How do share capital transactions differ from debt financing for a company?
Ans. Share capital transactions involve selling ownership stakes in the company, while debt financing involves borrowing money that needs to be repaid with interest, without giving up ownership.
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