Law question.........................

IPCC 558 views 3 replies

A ltd co. can make original issue of shares and cant make original issue of stock.......what does that original issue mean?

Replies (3)

original issue means 1st time issue...ie. when a company issues shares .it can  sell its shares in primary market.but it cannot sell the stock in promary market.The company will 1st sell the shares and later convert them to stock.the company cannot straighaway issue stock...



television ki bhasha me...kyunki stock bhi kabhi share tha.......har stock ko stock banne se pehle share banna hota hai...

agree with sunshine & greate reply by sunshine

Original Issue Stock-Original Issue Stock is securities issued when a firm is first incorporated. It refers to the amount by which a security's price at issuance is lower than par value. In the case of fixed-rate capital securities, original-issue discount considered to exist if issuer is entitled to elect to defer distributions. In structuring a private equity transaction, use of a preferred stock with liquidation preference or other clauses that guarantee a fixed payment in the future can potentially create adverse tax consequences.


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