_____ is merely a conversion of existing reserves and surpluses into share capital. It does not result in raising fresh capital. It represents just a book entry subject to certain rules and regulations.*Book buildingdistribution.Issue of bonus sharesAdvertising a public issueUnderwriter
Question
_____ is merely a conversion of existing reserves and surpluses into share capital. It does not result in raising fresh capital. It represents just a book entry subject to certain rules and regulations.*Book buildingdistribution.Issue of bonus sharesAdvertising a public issueUnderwriter
Solution
The correct answer is "Issue of bonus shares". This process involves converting existing reserves and surpluses into share capital. It does not result in raising fresh capital but is merely a book entry subject to certain rules and regulations.
Similar Questions
_____ is also a method of issue of shares based on floor price which is indicated before the opening of the bidding process.*UnderwriterAdvertising a public issueIssue of bonus sharesBook buildingdistribution.
What is the source of funds for issuing Bonus shares?(1.0 Marks)Cash From New InvestorsAFree Reserves And Surplus Of The CompanyBBank LoansCGovernment Grants
Which of the following statements is true about Bonus shares?(1.0 Marks)They Are Issued At A Discounted PriceAExisting Shareholders Pay For ThemBThey Are Issued To New InvestorsCThey Are Issued Out Of Free Reserves And Surplus
A bonus issue of shares to existing shareholders has which of the following impacts on the equity of a company? Total equity increases. Total equity decreases. No overall change in total equity. Only the amount of issued share capital changes.
Bonus shares refer to:a.Additional shares distributed to shareholders as dividendsb.Additional shares issued to raise additional capitalc.Additional shares issued for employee stock optionsd.Additional shares purchased in the open market
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.