HomeTestsSearchRankProfile
easyMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

A company purchases its own shares of Rs. from the market. What is this process called?

  1. A
    Re-issue of Shares
  2. B
    Buy-back of Shares
  3. C
    Bonus Issue of Shares
  4. D
    Forfeiture of Shares

Solution & Step-by-step Explanation

When a company purchases its own shares back from the open market or existing shareholders, the transaction is legally termed as a "Buy-back of Shares" under Section 68 of the Companies Act, 2013.

Practice this question

Try it yourself before checking the explanation above.

A company purchases its own shares of Rs. from the market. What is this process called?
A
Re-issue of Shares
B
Buy-back of Shares
C
Bonus Issue of Shares
D
Forfeiture of Shares

Share This Question

Company AccountsShare CapitalBuy-back

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion