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types of bonus shares
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∙ 10y ago
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Does share capital change when bonus share issued?
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is the entry of bonus share shares 100000 1 bonus shares for every 5 shares now what is the acquesition cost?
cash (100000x5) 500,000 capital stock(100,000x5) 500,0000
Difference between fully paid shares and shares issued at discount?
Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
How many bonus shares of Reliance petroleum were issued after 1995?
Dear Sir, I had 50 shares of reliance Petroleum. In fact you have taken back and given me 10 sharesof Relience Industries in 1995. After that have recieved 10 bonus shares. And after that I have not recieved and bonus shares. Please lete me know from 1993 onwards have many bonus shares you have issued. JLPATEL
What is a share describe the various types of shares that can be issued by a company?
A share can be defined as an asset that belongs to an individual or a group of people. The various types of shares that can be issued by a company are Authorized and issued shares. Authorized shares are the ones that a company is allowed to issue while issued shares are the shares that are allocated to shareholders.
Does share capital change when bonus share issued?
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
What circumstance are bonus shares issued in a company?
When company is in short of money and they have amount available in the form of reserves then company issues the bonus shares and uses the reserves as a working capital to run day to day business or use for investment opportunities.
What r the different types of shares?
There are two types of Shares 1. Equity Share 2. Preference Share Some times, if company earns large amount of profit, instead of giving dividend to the shareholder, it gives "Bonus Shares"
Can issued shares be split?
This is done, usually, only by the company that issued the shares.
Treasury stock plus outstanding shares would be?
Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
What is the difference between Bonus Shares and Shares split?
in case of bonus shares the value of the share decreases proportionate to the number of bonus shares issued. for eg: if company issues bonus shares in ratio of 1:1 and the price of share is 900 , then after bonus issue, the corresponding value of the share gets Rs. 450.genreally company issue this in place of giving dividends.the market captalisation doesnt get affected. as if shares doubles the prices is halved. whereas in split shares the face value of share decreases. generally the face value of share is 10 Rs. but face value can be high. eg: if face value is 100 Rs. then company can split d share in ratio of 100:10. ..now the person holding 100 shares of rs 100 now will hold 1000 shares of 10 Rs each. now shares can be traded more frequently and this will in turn increase the liquidity of the share
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is the entry of bonus share shares 100000 1 bonus shares for every 5 shares now what is the acquesition cost?
cash (100000x5) 500,000 capital stock(100,000x5) 500,0000
Difference between fully paid shares and shares issued at discount?
Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.
Bonus shares represent simply a division of corporate pie into alarge number of pieces explain?
Bonus shares are issued out of free reserves and balance in profit and loss account. These amounts get accumulated over a period of time. Such accumulation makes it a larger pie.These accumulated amount belong to the shareholders. These got accumulated instead of paying dividends. The larger pie is now distributed to the shareholders. Such a distribution is made on the basis of existing shareholding. Hence bonus shares is nothing but distribution of the larger pie to all by distributing them in small pieces in the ratio of the shares they hold.
