Which of the following statements is/are correct with references to pledged shares?
1. It is one of the options that the promoters of the companies use to secure loans to meet the working capital requirement, personal needs and to fund other ventures or acquisitions.
2. It is a method by which the companies guarantee returns to the minority shareholders.
Select the correct answer using the code given below:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Pledging of shares is one of the options that the promoters of the companies use to secure loans to meet the working capital requirement, personal needs and to fund other ventures or acquisitions.
A promoter’s shareholding in the company is used as collateral to avail a loan. While pledging shares, the promoters retain their ownership. However, as the share price keeps fluctuating, the value of the collateral also changes. When the value of the shares pledged with a lender falls below a certain level, it triggers ‘margin call’, requiring the promoters to make up for the shortfall in the value of the collateral.
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
International Relations · Easy
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not depending on short-term foreign borrowings 2. Opening up to more foreign banks 3. Maintaining full capital account convertibility Select the correct answer using the code given below:
International Relations · Easy
Out of the following statements, choose the one that brings out the principle underlying the Cabinet form of Government:
International Relations · Easy
A country is said to have reduced the Poverty Gap Ratio from 2010-11 to 2019-2020. What does it imply?
International Relations · Easy