Observation

Majority of the candidates attempt to (2a and 2b) part of the question performed brilliantly well on what is a share and two main types of shares but in contrast to question (2c),majority of the candidates that attempted question (2c) performed below expectation as some of the required explanation on terminologies related to shares were muddled up.

Some of the suggested responses were:
           
2(a)      Share
A share is a unit of capitalof a company allocated to an individual.
Or        A share is the interest of the shareholderin a companymeasured in terms of money.                                                                                                          

2(b)      Types of shares:

1. Ordinary shares;
2. Preference shares.

2(c)Explanation of terms:

1. Prospectus: This is a legal document that contains important information about a companyand serves as an invitation to the public to subscribe for shares  or debentures of a company.
2. Revenue reserves: These are undistributed profitsof a company which are available for distribution as dividends.

OR
These are undistributed profits of a company which may be used for purposes suitable by the directors.

3. Forfeited shares: Shares are forfeited, if a shareholder fails to pay an installment or calls on his sharesafter repeated reminder by the board of directors.
4. Issued share capital: This is the value of the total number of sharesactually issued to shareholders.
5. Authorized share capital: This is the total number of sharesthat a company is registered to issue or allowed to issue.