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Dear Sir,
Please help me understand the difference between Scrip Dividend and Bonus issue in detail. The kaplan study text just mentions they’re different without explaining why. Please let me know the difference sir.
Thank you so much.
Regards,
Rajvir Singh Oberai.They are both issues of free shares to existing shareholders, but a scrip dividend is when shareholders are offered shares instead of a cash dividend – shareholders have the choice individually of taking cash or taking shares instead.
I explain all this in detail in my free lectures – you cannot expect me to type out all my lectures here 🙂
The lectures are a complete free course for paper F9 and cover everything needed to be able to pass the exam well.
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