write the difference between bounus share and right share
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The difference between Right Sharés and Bonus Sharés is that the right sharés are issued to the sharé holders at a discounted rate. Bonus sharés are is sued to the sharéholders for freé of cost. Right sharés are always paid fully or partly, whereas bonus sharés are always paid fully.
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Question :
Write the difference between 'Bonus Share' and 'Right Share'.
Answer :
Bonus Share :
Bonus Shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. to capitalise a part of the company's retained earnings for conversion of its share premium account, or distribution of treasury shares. An issue of bonus shares is referred to as a bonus share issue.
Right Share :
Right share is share which the company provides a right to buy share directly from company for existing shareholders in the proportion of their existing holding within the fixed period of time. Right share are generally issued at a discount to the current market price; issued at face value ie Rs. 100.
Difference :
The main difference between Right Shares and Bonus Shares is 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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