Question
Which of the following statements is true with regard to
declaring and issuing of Bonus Shares?Solution
Explanation:
A Bonus issue involves issuing fully paid-up shares to existing shareholders out of free reserves or securities premium. It reduces reserves but doesn’t affect the total capital employed or cash position. It’s not the same as dividends, as it involves capitalizing profits, not distributing them.
The following table shows the distribution of marks (out of 100) obtained by 60 students:
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