Question

Stock is a consolidation of _____ shares.

• A. partly paid
• B. fully paid
• C. equity
• D. sweat

Answer 1

The correct option is B fully paid

Stock is a consolidation of shares in to one divisible unit. When it is impossible for the share capital to be one share, any amount of stock may be transferred. Normally companies restrict the issue of stocks in the multiple of 100.

A company can convert its fully paid shares in to stock according to section 94(c) of the companies act.