Abc corporation has 20,000 shares outstanding at $40 each. it wants to raise $150,000 by a rights offering with a $30 subscription price. 4 rights are required to purchase one new share.
The company's capital is divided into shares. Each share forms an ownership unit of the company and is offered for sale to raise capital for the company. Explanation: Stocks can be broadly divided into the two categories of stocks and preferred stocks. In the financial world, stocks consist of shares in which the ownership of a corporation or company is divided. A single share represents a company's partial ownership over the total number of shares. Wikipedia
A share is the smallest unit of stock in a company. Therefore, when classifying stocks to refer to specific characteristics, the correct word is stocks. Technically, an inventory is a unit of inventory. Common and preferred shares refer to different types of shares in a company.
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