Question

When the shares are issue to the shareholders in place of dividend it is also called?

Answer 1

It is also called as Bonus shares

Answer 2

Introduction:

When corporations are short on cash and shareholders demand a consistent income, bonus issues are issued to them.

Explanation:

A bonus share issuance is stock issued by a corporation in lieu of cash dividends. Shareholders can sell their shares in order to fulfil their liquidity requirements.

Bonus shares raise the share capital of a firm but not its net assets.

Therefore, the answer is BONUS SHARES.