In context with the share markets what is the difference between rights and bonus issue 1 ...........

Economic Affairs Agricultural Marketing and Prices

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In context with the share markets, what is the difference between rights and bonus issue?

1. Bonus issues are issued free of charge, Right Issues are for a charge

2. Bonus Issue is under primary market offering, Rights issue us under secondary market offering

Choose the correct option:

Only 1

Only 2

Both 1 & 2

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Explanation:

2nd statement is incorrect.
A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. For example, a company may give one bonus share for every five shares held.