What is capstock? Explain subscription and resumption

Question

Accepted Answer

Capstock refers to the total value of a company's outstanding shares of stock.

Capstock is the market value of a company's equity capital.
It represents the total value of all the company's shares of stock.
Capstock can be calculated by multiplying the current market price per share by the total number of outstanding shares.
It is an important metric for investors and analysts to assess the overall value of a company.
Subscription refers to the process of purchasing new shares of a company's stock.
It can be done through an initial public offering (IPO) or a subsequent offering.
Investors subscribe to new shares by submitting an application and paying the subscription price.
Resumption refers to the resumption of trading in a stock after a temporary suspension.
It occurs when a stock that was previously halted or suspended is allowed to trade again.
Resumption can happen after the resolution of a significant event or announcement that caused the suspension.
During resumption, the stock's price may experience volatility as trading activity resumes.

Accepted Answer

Capital Stock (Capstock) refers to the share base of the fund. that means the number of shares held by the Investors.

There are 3 main cap stock transactions:

Subscription: Represents a Purchase of shares/units.

Redemption: Investors sell their shares back to the fund.

Distribution: The fund distributes the Income to the shareholders based on the number of shares they held.

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