Q. write the difference between bonus share and right shares.
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Answer:
Key Differences Between Rights Shares and Bonus Shares
While right shares are offered to the shareholders at a price less than the existing market price. Conversely, bonus shares are issued to the shareholders free of cost. The basic objective of the right issue is to bring additional capital to the firm
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The key difference between Right Shares and Bonus Shares lies in the fact that the right shares are issued to the shareholders at a discounted rate. Bonus shares are issued to the shareholders for free of cost. Right shares are always paid fully or partly, whereas bonus shares are always paid fully.
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