Question

Which type of share is issued by a company to its existing shareholders without receipt of any consideration from shareholders for issuance of such share?

A ESOP Correct Answer Incorrect Answer
B Right shares Correct Answer Incorrect Answer
C Bonus Shares Correct Answer Incorrect Answer
D Preference Shares Correct Answer Incorrect Answer
E Sweat Equity Shares Correct Answer Incorrect Answer

Solution

Bonus shares are additional shares a company gives to its existing shareholders without any additional cost or free of cost, based upon the number of shares that a shareholder owns.

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