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Why company make bonus issue of shares?

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Question added by asad ali
Date Posted: 2017/04/29
Shameem Pookante Valappil
by Shameem Pookante Valappil , Accountant , Rooftek Metals Private Limited

Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Because issuing bonus sharesincreases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors.

Rund Al-Momani
by Rund Al-Momani , Senior Regional Finance Officer , relief international

making it more attractive to investorsBecause issuing bonus shares increases theissued share  capital of the company

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