A disadvantage of shares as security is that a) the lender is required to register the certificate for the shares with the registrar of companies b) if a company restructures its shareholding by way of a rights issue the value of each share will increase c) the lender is required to register the certificate for the shares with the register off titles d) the value the share is always the same as its power value so lenders will have to sell in a time of high inflation will lose money
A disadvantage of shares as security is that a) the lender is required to register the certificate for the shares with the registrar of companies b) if a company restructures its shareholding by way of a rights issue the value of each share will increase c) the lender is required to register the certificate for the shares with the register off titles d) the value the share is always the same as its power value so lenders will have to sell in a time of high inflation will lose money
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 33CYBK
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- A disadvantage of shares as security is that
a) the lender is required to register the certificate for the shares with the registrar of companies
b) if a company restructures its shareholding by way of a rights issue the value of each share will increase
c) the lender is required to register the certificate for the shares with the register off titles
d) the value the share is always the same as its power value so lenders will have to sell in a time of high inflation will lose money
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