Issuance of Preference Share and Ordinary Share

[Annie Lee]

I need some help on issuance of preference share and ordinary share. I understand that they have their own different characteristic. I wanted to know are they always issue at the same time or seperately at different time?

[siddharth]

Hi lee,

it wont be issued together. whenever an organisation requires funds they analyse risk involved return expected etc. of various sources of finance, capital structure of an organisation etc. and decide whether to issue ordinary shares, preference shares, bank loan etc.

regards

[Annie Lee]

Hi lee,

it wont be issued together. whenever an organisation requires funds they analyse risk involved return expected etc. of various sources of finance, capital structure of an organisation etc. and decide whether to issue ordinary shares, preference shares, bank loan etc.

regards

Hi Siddharth,

Appreaciated so much for the quick reply! You clear my doubt. I always thought that they can be issue together at the same time. Thanks for the guidance.:)

[Acid]

Hi Annie,

Preference shares and Ordinary shares are all forms of capital and can ofcourse be issued together but it depends upon Companys discrection as when the funds would be required and what type of financing would be most effective etc.

So they can be issued anytime . Along with other sources of finance or just alone .


Regards,

Acid

[Annie Lee]

Hi Annie,

Preference shares and Ordinary shares are all forms of capital and can ofcourse be issued together but it depends upon Companys discrection as when the funds would be required and what type of financing would be most effective etc.

So they can be issued anytime . Along with other sources of finance or just alone .


Regards,

Acid

Hi Acid,
Thank you so much for your helpful answer. :)

Rgds,
Annie

[siddharth]

Hi Acid,

that may be possible but i never heard any company issuing both equity and preference shares together and i doubt whether it is permissable by companies act also.

regards

[Acid]

Hi Acid,

that may be possible but i never heard any company issuing both equity and preference shares together and i doubt whether it is permissable by companies act also.

regards

Hey Siddharth,

You are right even I didnt heard that but I dont think that there may be any objection regarding that in Companies Act. Anyhow , Hows your F8 going ..which chapters are you on?

[siddharth]

Hi Acid,

I am in second chapter. Planning to study other chapters along with your group discussion. Its a brilliant idea to start such a discussion in this forum. keep going.

how about your studies In f8?.

[Acid]

hi there,

I have finished the study test and now going through the Questionbank along with the group discussion.

Best of luck and see you on the F8 Studyplan!

Acid