Shares that which company buy back from the public are calledQuestion 20Answera.Preference sharesb.Redeemable sharec.Debenturesd.ordinary shares
Question
Shares that which company buy back from the public are called
Question 20
Answer:
a. Preference shares
b. Redeemable share
c. Debentures
d. Ordinary shares
Solution
The shares that a company buys back from the public are referred to as "ordinary shares."
Explanation:
When a company repurchases its own shares from the public, it is typically doing so to reduce the number of shares in circulation, which can help increase the value of remaining shares. This process is commonly associated with ordinary shares, which represent equity ownership in the company.
- Preference shares are a type of equity that generally come with fixed dividends and seniority over ordinary shares in the event of liquidation.
- Redeemable shares are shares that can be bought back by the company after a specified period or under certain conditions; however, they are not exclusively the term used for all buyback scenarios.
- Debentures are a type of debt instrument used by companies to raise funds, and thus they are not related to equity share buybacks.
Final Answer
The correct answer is d. ordinary shares.
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