English

Shares issued free of cost to the shareholders are known as ______ shares.

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Question

Shares issued free of cost to the shareholders are known as ______ shares.

Options

  • preference

  • equity

  • bonus

MCQ
Fill in the Blanks
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Solution

Shares issued free of cost to the shareholders are known as bonus shares.

Explanation:

Bonus shares are issued free of cost to existing shareholders out of the company’s accumulated profits or reserves. They are given in proportion to the shares already held by the shareholders.

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Precautions to Be Taken by the Secretary While Corresponding with Members
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Chapter 6: Correspondence with Members - Exercises [Page 101]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 6 Correspondence with Members
Exercises | Q 1. A) 4. | Page 101

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(Germany, Bonus shares, Secondary market, Dividend, ECS)


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