In which situation(s)may shares be issued in return for something other than cash?

Question

Quizplus · Accepted Answer

All of the options given are situations where shares may be issued in return for something other than cash.

A) Shares can be issued in return for a capital contribution in kind - this refers to a situation where an individual or company pays for shares by contributing assets or property, instead of cash.

B) New shares may be issued as the result of a capitalization of reserves - this occurs when a company uses its profits or reserves to issue new shares to existing shareholders.

C) New shares may be the result of the conversion by a creditor of their claim into shares - this refers to a situation where a creditor, such as a lender or bondholder, converts their debt or financial claim into equity in the company by acquiring shares.

In Which Situation(s)may Shares Be Issued in Return for Something