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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › bonus issue of shares
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 ?
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.”
sir are there any specific reason as per why the last sentence does need to include the word ‘equity finance ”
thank you
regards
Because it doesn’t make it any easier to raise debt finance.