Which of the following statement about bonus shares is NOT correct?
A) Bonus shares are generally issued at no cost to the shareholders.
B) If a company offers a 1 for 4 bonus issue this means for every 1 share a shareholder owns they get four extra shares.
C) When shares go ex-bonus there should be a downward adjustment in the share price.
D) If a company declares a bonus share issue this can be viewed by the market as a positive signal about the company's future profitability.
Correct Answer:
Verified
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