Explain the nature of a reserve

Assignment Help Accounting Basics

Reference no: EM132892257

Chapter : Share capital and reserves

Comprehension questions

1. Explain the nature of a reserve. How do reserves differ from the other main components of equity?

2. Explain when an options reserve would be raised.

3. Discuss the nature of a rights issue, distinguishing between a renounceable and a non-renounceable issue.

4. What is a private placement of shares? What are the advantages and disadvantages of such a placement?

Reference no: EM132892257

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