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Principles of Accounting & Financial Management Bonus and Right issue

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………… are shares issued by a company free of cost to its existing shareholders

Right shares

Bonus shares

Stock options

Warrants

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Explanation:

Answer:

Bonus shares

Bonus Shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. to capitalise a part of the company's retained earnings for conversion of its share premium account, or distribution of treasury shares. An issue of bonus shares is referred to as a bonus share issue.