Term structure or interest rate
Describes the relationship between interest rate and term (maturity period) of debt instruments. Generally, the longer the maturities, the higher the interest rates and vice verse.
(iii) Share split – involves splitting existing shares into many smaller shares of lower par value.
E.g. – 10m shares @ Shs. 20 par split into 20m shares @ Shs. 10 par.
– 50m shares @ Shs. 10 par split into 200m shares @ Shs. 2.50 par.