Mr. K has surplus funds and he wants to make an investment in the shares of a Public Limited Company. Stock broker has offered him shares of company X at a price of Rs.22 per share with an expected profit of 10% next year. Second offer is shares of company Y at a price of Rs.42per share bearing a fixed rate of dividend with an expectation that next year company will offer 1 share free of cost against 5 shares held by its shareholders.
Required:
You are required to discuss the following points relating to the above scenario:
Type of shares offered and benefit provided of company X next year.
Type of shares offered and benefit provided of company Y next year.
Identify at least two major rights (other than the benefit mentioned above) if Mr. K purchases shares of company X.
Identify at least two major rights (other than the benefit mentioned above) if Mr. K purchases shares of company Y.

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