Bonus shares are issued out of .........
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10
Answer:
Bonus issues are given to shareholders when companies are short of cash and shareholders expect a regular income. Shareholders may sell the bonus shares and meet their liquidity needs. Bonus shares may also be issued to restructure company reserves. Issuing bonus shares does not involve cash flow. It increases the company’s share capital but not its net assets.
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Answered by
3
Answer:
Capital Reserve (Realised in cash only)
Capital Redemption Reserve
Securities Premium A/C
Free Reserves
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