Definitions

Question 1

Debentures

Answer 1

are debt instruments issued by a cooperation or government to raise funds. .

Question 2

prospectus

Answer 2

A prospectus is defined as a legal document describing a company’s securities that have been put on sale.

Question 3

Certificate of incorporation

Answer 3

is a legal document filed with relevant government authority to create a cooperation

Question 4

Certificate of trading

Answer 4

A certificate of trading is a document that completion of trade or transaction between two parties .

Question 5

merges

Answer 5

A combination of two things especially companies into one.

Question 6

Shares

Answer 6

Shares are units of stocks issued by a coorporation

Question 7

Dividends

Answer 7

Dividends are rewards paid by the shareholder for there investments from the companies equity.

Question 8

Equity

Answer 8

Equity in business means the value of ownership in a company or asset after all debts have been paid. It represents what the owners or shareholders would receive if everything the company owns were sold and all its debts were settled.

Question 9

Liquidate

Answer 9

liquidate means to sell off all assets, typically to pay off debts or close down the company. It involves converting assets into cash by selling them, often at a discounted price, to settle financial obligations. After liquidation, the business ceases to exist, and any remaining funds are distributed among creditors or shareholders.

Question 10

Common stock

Answer 10

common stock represents ownership in a company. When you buy common stock, you become a part-owner of the company and may receive dividends and have the right to vote on certain company matters.

Question 11

Prefferred stock

Answer 11

Preferred stock is a type of investment in a company that typically pays fixed dividends to shareholders before common stockholders receive any dividends. Preferred stockholders usually do not have voting rights but have priority over common stockholders in receiving dividends and assets if the company is liquidated.

Question 12

Prospectus

Answer 12

A prospectus is a document that provides information about a company and its securities, such as stocks or bonds, that are being offered for sale to potential investors. It typically includes details about the company’s operations, financial performance, risks, and objectives.

Question 13

Economic of Scale

Answer 13

Economies of scale are cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit.