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Difference between a securitisation company and reconstruction company



 
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Difference between a securitisation company and reconstruction company #1 (permalink) Mon Feb 22, 2010 17:30 pm   Difference between a securitisation company and reconstruction company
 

Business English Lesson, Advanced Level

ESL/EFL Test #455 "Converting Free Reserves", question 1

......... shares are issued to the existing shareholders by converting free reserves or share premium account to equity capital without taking any consideration from investors; as a result, liquidity in the stock increases, and Effective Earnings per share, Book Value and other per share values stand reduced.

(a) Accumulated
(b) Bonus
(c) Preferred
(d) Supplemental

Business English Lesson, Advanced Level

ESL/EFL Test #455 "Converting Free Reserves", answer 1

Bonus shares are issued to the existing shareholders by converting free reserves or share premium account to equity capital without taking any consideration from investors; as a result, liquidity in the stock increases, and Effective Earnings per share, Book Value and other per share values stand reduced.

Correct answer: (b) Bonus

Your answer was: ?
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Explain the difference between a securitisation company and reconstruction company.

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