A limited liability company sells its share capital on the stock exchange. It currently has a share capital of 1,000,000 shares issued at £1 per shared. There is an interest in trading in these shares within the market and the shares start trading at £91 per share. Which of the following statements is most accurate correct? Select one: a. Those who are trading in the shares will have made significant losses. b. The directors of the company will have increased wealth. C. The company now has an increased share capital. d. There is no impact on the company's issued share capital.

A limited liability company sells its share capital on the stock exchange. It currently has a share capital of 1,000,000 shares issued at £1 per shared. There is an interest in trading in these shares within the market and the shares start trading at £91 per share. Which of the following statements is most accurate correct? Select one: a. Those who are trading in the shares will have made significant losses. b. The directors of the company will have increased wealth. C. The company now has an increased share capital. d. There is no impact on the company's issued share capital.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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