A transfer signed by the transferor, but with a blank for the name of the transferee is called a blank transfer. In a blank transfer neither the transferee’s name and signature nor the date of sale are filed in the transfer form. The transferee is at liberty to sell it again without filling his name and signature to a subsequent buyer.
When a right to sell a security is acquired, it is known as __________.
When a right to sell a security is acquired, it is known as put option. In finance, a put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
Stock exchange deals with the second hand securities. In short it deals with existing or second hand securities and hence it is called secondary market. Allows dealings only in listed securities : In fact, stock exchanges maintain an official list of securities that could be purchased and sold on its floor.
Dividend and interest are debited to profit and loss account. Debentures interest is a business expensed and therefore, it is a charge against profit and as such profit and loss account is debited with the total amount of interest payable during the accounting year whether the company has earned the profit or not.