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bonus issue of shares

BBrian4y ago
sir basically shares do exist In order to raise finance for a company but there are some shares like the bonus shares which do not directly raise finance to a company rather it does makes the companys shares more marketable which will in turn might raise finance to the company in the future . am i right in saying this sir ?
John MoffatJohn MoffatTutor4y ago#1
You are right except that the end of the last sentence should read ".......more marketable which will make it easier to raise new equity finance in the future."
BBrian4y ago#2
sir are there any specific reason as per why the last sentence does need to include the word 'equity finance '' thank you regards
John MoffatJohn MoffatTutor4y ago#3
Because it doesn't make it any easier to raise debt finance.
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