Question

Which of the following statements is true regarding equity capital? Preference shares are the most common...

Which of the following statements is true regarding equity capital?

Preference shares are the most common type of share capital.

Companies cannot have more than one class of share issued at any point in time.

A share split causes shareholders' equity to increase.

The number of shares actually in the hands of shareholders are called issued shares.
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Answer #1
Prefference shares are the most common type of share capital - false, Common equity is most common type of share capital
Companies cannot have more than one class of share issued at any point in time - false, companies can have any number of class of shares
A share split causes shareholders' equity to increase - false, shareholders equity will not change due to share split. Only no of shares will change.
The number of shares actually in the hands of shareholders are called issued shares - True, issued shares are those which are in the hands of sharehodlers.
Answer is The number of shares actually in the hands of shareholders are called issued shares.
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