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Answer Posted / barodianbuddy(acca)
BONUS ISSUE IS WHEN FREE SHARES ARE GIVEN NORMALLY TO EXISTING
SHAREHOLDERS AS A REWARD FOR THEIR ROYALTY. THEIR IS NO CASH
IMPACT AND AS SUCH BONUS ISSUES ARE ASSUMED TO BE ISSUED AT FIRST
DAY OF FINANCIAL YEAR. IT IS ISSUED TO SHOW FINANCIAL STRENGTH IN
STOCK MARKET AND TO DISTRIBUTE RETAINED EARNINGS IN FORM OF SHARES
TO EXISTING SHAREHOLDERS.
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