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what is bonus issue?
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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 |
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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