A shareholder in Company C owns 2,000 shares bought for $1 each. The company decides to make a bonus issue of one new share for every two existing shares held. How many shares does the shareholder now have in Company C?

Question

Quizplus · Accepted Answer

For every two existing shares held, the company is issuing one new share as a bonus. The shareholder initially owned 2,000 shares, so for every two shares, one new share is received. Therefore, the shareholder will receive 1,000 new shares, bringing the total number of shares owned to 3,000.

A Shareholder in Company C Owns 2,000 Shares Bought for $1