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The issue of rights is a movement of cash from say (bank to shares holders by sales) its a movement of cash. but a bonus issue of shares is a movement of cash say ( from bank to the company itself- shareholders) therefore it not a movement of cash? am I right
I don’t know why you say that a rights issue is a movement from bank to shareholders!!!
With a rights issue, the company is selling new shares (for cash) to shareholders. With a bonus issue, the company is giving new shares to shareholders free of charge, so there is no cash flow.
Do watch my free lectures on company accounts, where this is all explained.
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