Question

cash transaction is not involved in the issue of.............. shares.
option :- a) right b) bonus
c) original d) bonded​

Answer 1

Explanation:

d)bonded....may be....

Answer 2

b) Cash transaction is not involved in the issue of Bonus shares.

Explanation:

• When the company issue shares for the subscription and allots the shares to the shareholders when the amount against it gets received by the company, such type of allotment is known as an original allotment.
• When the company issues the share to its original shareholders for less than the prevailing market price, it's known as the right issue.
• And when the company wants to capitalize its free reserves that is CRR( cash reserve ratio), the company issues the bonus shares of the same amount as of reserve.
• In the bonus issue company doesn't ask for money from the shareholders as it just transfers it's free reserve from the free form to capitalize form.