Share splits: You own 1,200 shares of Mildura Chem, Co. The company has recently announced a 1-for-3 bonus share issue. How many shares will you own after the bonus issue?

Question

Quizplus · Accepted Answer

A 1-for-3 bonus issue means that for every 3 shares owned, the shareholder will receive an additional share. Since the shareholder owns 1,200 shares, they will receive 400 bonus shares (1/3 of 1,200). Therefore, the shareholder will own a total of 1,600 shares after the bonus issue.

Share Splits: You Own 1,200 Shares of Mildura Chem, Co