Question

what is bonus share ? Mention 4 funds can be used for the purpose of issue of bonus share​

Answer 1

A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. For example, a company may give one bonus share for every five shares held .

Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. In addition, increasing the number of outstanding shares decreases the stock price, making the stock more affordable for retail investors.

Answer 2

Answer:

In addition increasing the number of outstanding shares decrease the stock more affordable for retail investors .

Explanation:

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