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⍰ ASK Can a Public Limited Company issue bonus shares?

cryptohunter

cryptohunter

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Public companies can give existing shareholders extra shares for free, called bonus shares. This isnt to get more money but to reward shareholders. The board of directors decides and shareholders must agree.

It uses company savings to show confidence. Bonus shares increase total shares but dont change market value. Investors like it because it boosts liquidity and might make the stock cheaper.

Bonus shares are a smart move for both the company and shareholders.
 

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