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what is bonus issue?

Answers were Sorted based on User's Feedback



what is bonus issue? ..

Answer / prachi

when a company offers free shares to its existing
shareholders for the purpose og capitalising its profits is
called bonus issue.

Is This Answer Correct ?    5 Yes 1 No

what is bonus issue? ..

Answer / jagjeet singh

bonus issue is capitalisaion of profit
it means that if the co. hase huge fund iun reserve and
having unissued share capital then there may be suspicion
in the mind of stakeholder that co. is making abnormal
profit (having more income on less capital employed) then
to avoid such situation co. issue free share to existing
shareholder at some perscribed ratio

Is This Answer Correct ?    4 Yes 1 No

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