shareholders

Question 1

What is a share?

Answer 1

An individual part of the issued share capital?

Question 2

What is a shareholder?

Answer 2

Someone who owns a share of the business.

Question 3

What companies can sell shares?

Answer 3

Incorporated companies with a separate legal entity.

Question 4

How do shareholders get their rewards?

Answer 4

Dividends where an amount is paid ‘per share’.

Question 5

Why do people by shares?

Answer 5

Make money, build a portfolio, they have an interest in it.

Question 6

What is it called when shares rise in value?

Answer 6

Capital growth - there is a rise in the business’ value.

Question 7

What is share price determined by?

Answer 7

Supply and demand.
share>supply causes the price to rise.
supply>share causes the price to fall.

Question 8

What is the difference between Shareholders and the Board of Directors?

Answer 8

Shareholders - own a % of the business, provide capital and get dividends.
Board of Directors- make day to day decisions, get a salary and a bonus based on profitability.