Question : A company cannot issue:
Option 1: Redeemable preference shares
Option 2: Redeemable equity shares
Option 3: Redeemable debentures
Option 4: Fully converrtiable debentures
Correct Answer: Redeemable equity shares
Solution : Answer = Redeemable equity shares
Equity shares represent ownership stakes in a company and are considered permanent sources of capital. Unlike preference shares or debentures, which may have redemption provisions, equity shares typically cannot be redeemed by the company. Hence, a company cannot issue redeemable equity shares.
Question : A company may issue __________.
Option 1: Equity shares
Option 2: Preference shares
Option 3: Equity and preference share
Option 4: None of the above
Question : Which type of shares are redeemable?
Option 3: Debentures
Option 4: GDRs
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