A shareholder in Company C owns 1,000 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

After the bonus issue, the shareholder will receive one new share for every two existing shares held. As the shareholder initially had 1,000 shares, they will receive 1,000/2 = 500 new shares. Therefore, the shareholder will have a total of 1,000 + 500 = 1,500 shares in Company C.

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