In the business world, offering discounts is a common strategy used to increase sales and improve financial efficiency. Two frequently applied types of discounts are cash discounts and trade discounts. Although both are reductions in price, they serve different objectives and are applied at different stages in the buying and selling process.
When a company issues shares at a premium (for example, a share of face value ₹10 issued at ₹12, i.e., ₹2 premium), the extra amount collected is credited to the Securities Premium Reserve Account.
Share Capital is the amount of money a company raises by issuing shares to the public (shareholders). It represents the ownership money invested in the company by shareholders.
A share is a unit of ownership in a company. If you buy shares, you become a shareholder and get rights like receiving dividends and voting in company matters. Imagine a large company as a...
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