1.2c Shareholding Flashcards Preview

Business Studies AS > 1.2c Shareholding > Flashcards

Flashcards in 1.2c Shareholding Deck (15):
1

How many shareholders can there be in Ltd's?

Between 2-50

2

What must happen in order to buy shares in a Ltd company?

All other shareholders must agree

3

Trading of Plc shares on stock exchange usually requires the use of what?

A stockbroker

4

Roles of shareholders

1. Provide finance for a business
2. Vote on key decisions
3. Have access to company's information

5

Ordinary share capital definition

Money raised when selling shares for the first time.

6

Ordinary share capital formula

Ordinary share capital = number of shares sold x price they were sold for

7

What are shares initially sold through?

An initial public offering

8

How is price set on shares in initial public offering?

Based on the value and size of the company

9

How is price set on shares on the stock exchange?

How many are available to be bought and demand

10

What does market capitalisation calculate?

The value of a Plc

11

Market capitalisation formula

Market capitalisation = current share price x number of shares issued

12

Value of a large cap company

Greater than £4 billion

13

Value of a medium cap company

Between £500 million and £4 billion

14

Value of a small cap company

Lower than £500 million

15

What cap company are most likely to be targeted for mergers?

Medium cap companies

Decks in Business Studies AS Class (72):