An investor invests in Canta Ltd by purchasing 1,000 shares for $2.50 each. In the following year the company distributes a 1 for 1 share dividend (bonus issue) . After the issue the number of shares held by the investor:
A) will increase by 1000 and the market price of the shares will rise.
B) will increase by 1000 and the market price of the shares will remain the same.
C) will increase by 100 and the market price of the shares will fall.
D) will increase by 1000 and the market price of the shares will fall.
Correct Answer:
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