What are the disadvantages of issuing bonus shares?
What are the disadvantages of issuing bonus shares?The disadvantages of issuing bonus shares are:
1) To the company - as issue of this may lead to increase in capital of the company.
2) Shareholder expect existing rate dividend per share to continue.
3) It also prevents the new investors from becoming the shareholders of the company.
4) Shareholder preferring cash to stock dividend may be disappointed.
Finance interview questions and answers - Finance FAQs
Finance interview questions and answers - List of Finance questions with answers that might be asked during an interview - What are the various systems of Accounting? Explain them., What are the different types of expenditures considered for the purpose of accounting?...