Dear members, i have a doubt about bonous issue. what are the benefits of a company who issue bonous shares?
As the No. of shares increases Is the face value reduces?
Sivaprasad.M (Chartered Accountant) (83 Points)
11 June 2011Dear members, i have a doubt about bonous issue. what are the benefits of a company who issue bonous shares?
As the No. of shares increases Is the face value reduces?
CS Bijoy
(Expert)
(6394 Points)
Replied 11 June 2011
Bonus share is issue to capitalized the profit of the company it can help the company to maintain the price of the share it will not increase the value just quantity will increase.
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