Commerce Exam  >  Commerce Videos  >  Accountancy Class 12  >  Procedure of Issue of Shares

Procedure of Issue of Shares Video Lecture | Accountancy Class 12 - Commerce

41 videos|106 docs|56 tests

FAQs on Procedure of Issue of Shares Video Lecture - Accountancy Class 12 - Commerce

1. What is the procedure for issuing shares?
Ans. The procedure for issuing shares typically involves the following steps: 1. Determine the need for raising capital through share issuance. 2. Obtain necessary approvals from shareholders and regulatory bodies. 3. Prepare the prospectus or offer document, which provides information about the company, its financials, and the terms of the share issuance. 4. Advertise the share offering to potential investors through various channels. 5. Receive applications from interested investors and collect the subscription money. 6. Allot shares to successful applicants and issue share certificates. 7. File necessary documents with the regulatory authorities, such as the Registrar of Companies, to complete the share issuance process.
2. What approvals are required for issuing shares?
Ans. The approvals required for issuing shares depend on the jurisdiction and the type of company. However, some common approvals include: 1. Shareholders' approval: The company's shareholders need to approve the decision to issue shares. This is usually done through a resolution passed in a general meeting. 2. Regulatory approvals: Companies may need to obtain approvals from regulatory bodies such as the Securities and Exchange Commission (SEC) or stock exchanges where the shares will be listed. 3. Board of Directors' approval: The board of directors of the company typically needs to approve the share issuance before seeking shareholders' approval.
3. What is a prospectus or offer document?
Ans. A prospectus or offer document is a legal document prepared by a company seeking to issue shares to the public. It provides detailed information about the company, its financials, the terms of the share issuance, and any risks associated with investing in the company's shares. The prospectus aims to provide potential investors with all the necessary information to make an informed decision about investing in the company.
4. How is the share offering advertised to potential investors?
Ans. The share offering can be advertised through various channels, including: 1. Public announcements: Companies may issue press releases or publish notices in newspapers to inform the public about the share offering. 2. Online platforms: Companies can leverage online platforms, such as their website or social media channels, to advertise the share offering to a wider audience. 3. Investment intermediaries: Companies may engage investment banks, brokers, or financial advisors to promote the share offering to their clients. 4. Roadshows and investor conferences: Companies may organize roadshows or participate in investor conferences to present their share offering to potential investors.
5. What are the post-issuance requirements for issuing shares?
Ans. After the share issuance process is complete, companies typically have certain post-issuance requirements, including: 1. Share certificate issuance: Share certificates need to be issued to successful applicants, confirming their ownership of the shares. 2. Regulatory filings: Companies may need to file necessary documents with regulatory authorities, such as the Registrar of Companies, to comply with reporting and disclosure requirements. 3. Shareholder communication: Companies are required to communicate with shareholders and provide them with regular updates on the company's performance, financials, and any material developments. 4. Compliance with listing requirements: If the shares are listed on a stock exchange, the company must comply with the exchange's listing requirements, which may include timely submission of financial reports and disclosure of any material information.
41 videos|106 docs|56 tests
Explore Courses for Commerce exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!
Related Searches

past year papers

,

mock tests for examination

,

Extra Questions

,

Important questions

,

Free

,

ppt

,

pdf

,

Exam

,

Summary

,

video lectures

,

Sample Paper

,

Procedure of Issue of Shares Video Lecture | Accountancy Class 12 - Commerce

,

practice quizzes

,

Viva Questions

,

shortcuts and tricks

,

Previous Year Questions with Solutions

,

Procedure of Issue of Shares Video Lecture | Accountancy Class 12 - Commerce

,

Procedure of Issue of Shares Video Lecture | Accountancy Class 12 - Commerce

,

study material

,

Semester Notes

,

Objective type Questions

,

MCQs

;