bonus shares?

Answer Posted / nitin kewlani

Shares issued by a "healthy" company to existing
shareholders without any cost. They are issued in
proportion to the existing holding of a shareholder. Only
if a company has accumulated a surplus in free reserves
(retained profits) it can issue bonus shares. As bonus
issues add to the number of total shares of the company,
the Earnings Per Share ratio decreases

Is This Answer Correct ?    5 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

WHAT WILL BE THE ACCOUNTING ENTRIES IN THE BOOKS IN CASE OF A COMPANY HAVING ITS SHARE CAPITAL WHEN A NEW COMPANY (LTD OR (P) LTD) IS FORMED ?

1615


Q A project cost Rs.6,00,000. It yields annually a profit of Rs.80,000. After depreciation of 12.5% p.a.but before tax of 50%.Calculate payback priod.

1872


Iam selected for final round of interview in IDBI bank for asst. manager post. Can any one help me in knowing what kind of questions will be asked in the interview and how should i prepair?

1560


What are the different payrolls? how we calculate the exmployee payroll? how we calculate the employee salaries details?

1774


i want to sit for the written examination held by govt. sector like coal india, ongc for the post of accountant .. qualification ca inter.. plz any1 of u let me know on wht subjects the questions are asked and wht types of questions are asked... plz let me know.. plz

1426






What are the accounting conventions and Practices?

1709


With a 600 credit score, how to improve my credit rating score?

1407


How can a company reduce profit

1499


What is the working formula for Working Capital Turnover

1637


Whats the Balnace of Closing stock so if we issued the materil then the Closing stick will be dr and in case we pirchsed the materil the closing stock will be cr so tell me that i m correct or not

5404


what is the difference between Tally ERP and SAP FI ECC?

1973


I AM APPLY FOR CLERICAL CADRE IN SBI. SO ANYONE SEND ME QUESTION WITH ANSWERS, WHICH ARE RELATED TO THAT JOB. MY EMAIL ID IS shawetasingh24@gmail.com

1613


how MIS statements used in accounts receivables n payables? n what is the advantage of this reports?

1441


Expand-------IETF

2004


Expand----------MTSC

1689