Bonus issue and stock split up
This query is : Resolved
05 March 2009
What are differences between bonus issue and stock split up? Is the bonus shares represent a compensation for inflation factor for the money initially invested? If so, is it advisable for the organisation to issue bonus shares?
05 March 2009
bonus shares are issued to the existing shareholders by converting free reserves or share premium account to equity capital without taking any consideration from investors.
A type of corporate action where a company's existing shares are divided into multiple shares. Although the amount of shares outstanding increases by a specific multiple, the total value of the shares remains the same i.e. share capital compared to pre-split amounts, because no real value has been added as a result of the split.
there are many reasons behind issue of bonus shares and stock split up and inflation factor can be one of them.
A type of corporate action where a company's existing shares are divided into multiple shares. Although the amount of shares outstanding increases by a specific multiple, the total value of the shares remains the same i.e. share capital compared to pre-split amounts, because no real value has been added as a result of the split.
there are many reasons behind issue of bonus shares and stock split up and inflation factor can be one of them.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
