If the shareholder, who is offered right shares, does not want to purchase further shares, he can renounce or sell his rights within the specified period. As, generally, the rights shares are offered to the existing shareholders at a price lower than the market price of shares, the right to purchase these shares is valuable. The value of the rights [...]
After reading this article you will learn about:- 1. Meaning of Bonus Issue 2. Effects of Bonus Issue 3. Advantages 4. Disadvantages. Meaning of Bonus Issue: A company can pay bonus to its shareholders either in cash or in the form of shares. Many a times, a company is not in a position to pay bonus in cash inspite of [...]
After reading this article you will learn about the Advantages and Disadvantages of Stable Dividend Policy. Advantages of Stable Dividend Policy: A stable dividend policy is advantageous to both the investors and the company on account of the following: (a) It is sign of continued normal operations of the company. (b) It stabilises the market value of shares. (c) It [...]