ACCOUNTING TERMINOLOGY CONTINUED
Companies (pg. 25-60)
, FINANCIAL STATEMENTS:
Shares usually sold it lots of 100.
Share certificate ➔ legal evidence of the shareholding by a shareholder ➔ kind
of shares he/she holds (ordinary or preference), number of share and serial
number of shares.
Company must keep record of each shareholder in share register, in which all
changes in shareholdings must be recorded,
Company ➔ legal personality ➔ shareholder dispose of shares without
affecting the continued existence of the company ➔ company does not benefit
financially in terms of capital when shares are sold.
Share certificate is a negotiable instrument ➔ may be passed on to another
person in the event of the sale of he shares.
JSE provides the means for facilitating transactions between shareholders
Share price quoted on JSE (market price) very seldom bears any resemblance to
issue price of shares.
If company decides to issue additional shares, not restricted to selling ‘new
’shares at initial share price, market price gives indication of what public i
prepared to pay, so company may make an issue of shares at a higher price.
Companies (pg. 25-60)
, FINANCIAL STATEMENTS:
Shares usually sold it lots of 100.
Share certificate ➔ legal evidence of the shareholding by a shareholder ➔ kind
of shares he/she holds (ordinary or preference), number of share and serial
number of shares.
Company must keep record of each shareholder in share register, in which all
changes in shareholdings must be recorded,
Company ➔ legal personality ➔ shareholder dispose of shares without
affecting the continued existence of the company ➔ company does not benefit
financially in terms of capital when shares are sold.
Share certificate is a negotiable instrument ➔ may be passed on to another
person in the event of the sale of he shares.
JSE provides the means for facilitating transactions between shareholders
Share price quoted on JSE (market price) very seldom bears any resemblance to
issue price of shares.
If company decides to issue additional shares, not restricted to selling ‘new
’shares at initial share price, market price gives indication of what public i
prepared to pay, so company may make an issue of shares at a higher price.
