[Solved] Bonus shares are issued to

Bonus shares are issued to

a) New members

b) Existing shareholders

c) Employees

d) None of these

Answer: (b) Bonus shares are issued to Existing shareholders. Bonus shares are issued according to each shareholder’s stake in the company. Bonus issues do not dilute shareholders’ equity, because they are issued to existing shareholders in a constant ratio that keeps the relative equity of each shareholder the same as before the issue.

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