Share market participants can regard a bonus issue favourably because:
A) bonus issues represent a change in the total assets of a company.
B) bonus issues increase the equity/debt ratio of a company, and so reduce financial risk.
C) they take it as a signal from the company of increased future profitability.
D) bonus issues increase the number of shares in an investor's portfolio and hence their total value.
Correct Answer:
Verified
Q80: A company whose share is selling for
Q81: There is _ change in the capital
Q82: Efficient price discovery means that share information
Q83: When a share price of a company
Q84: If two assets are negatively correlated this
Q86: Passive investment involves building an investment portfolio
Q87: An investor holds 100 shares of a
Q88: A company's ability to meet short-term financial
Q89: A share that has a beta of
Q90: Continuous disclosure rules of a stock exchange
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents