Right Share and Bonus
Share
Right share is number of shares
issued to the existing share holder at a discounted price and this is
method to increase the share capital of the entity and with this right
issue the market price of the share are expected to come down to nullify
the effect of right issue.
Bonus Share is a replacement of cash dividend .
in bonus share no new resources inducted in the operations but the
investor are compensated in form of share instead of cash dividend.
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