Commerce Optional (UPSC-IAS)

👆🏻Model Questions on Cost of Capital - UPSC commerce Optional. @commerceoptional

@commerceoptional 👆🏻Above question is related with Cost of capital of Topic Financial Market of Commerce Optional UPSC.

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Above question is related with Cost of capital of Topic Financial Market of Commerce Optional UPSC.

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Civil Service Gurukul will start Daily answer Practice for UPSC Commerce Optional and Test Series for 2021 from 01/05/2020. All syllabus for commerce optional will be completed by November 2020. This guidance program will be very helpful for UPSC Aspirant.

👆🏻Basics related with Current affairs for Commerce Optional for UPSC (IAS) Exam.😊

What is ‘Rights issue’ Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price. Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares. The rights issued to a shareholder have value, thus compensating current shareholders for the future dilution of their existing shares’ value. Dilution occurs because a rights offering spreads a company’s net profit over a larger number of shares. Thus, the company’s earnings per share, or EPS, decreases as the allocated earnings result in share dilution. What is the Limited Liability Partnership (LLP)? LLPs are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners. In a general partnership, all partners share liability for any issue that may arise. The LLP is a formal structure that requires a written partnership agreement and usually comes with annual reporting requirements depending on your legal jurisdiction. What is the FVCI route of investment? Foreign Venture Capital Investor’ (FVCI) means an investor incorporated and established outside India and registered with Securities and Exchange Board of India under Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. The amount of consideration for all investment by an FVCI has to be received/made through inward remittance from abroad through banking channels or out of funds held in a foreign currency account and/ or a Special Non-Resident Rupee (SNRR) account maintained by the FVCI with an AD bank in India. The foreign currency account and SNRR account shall be used only and exclusively for transactions under the relevant Schedule.

👆🏻Current affairs for Commerce Optional for UPSC (IAS) Exam.😊