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Company earns profits and that money is put for the following use:-…
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Dividend policy is an element of the financial management. It helps the company in capital markets...
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The external factors which determine the dividend policy are as follows:-
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Stable dividend policy - This is also called Regular policy in this company pays dividend at fixed rate, and maintains it for long time even the profit fluctuates…
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Cash dividends are the first form in which dividends are paid out in currency, usually by check or electronic cash….
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Bonus shares are the shares which are allotted to the existing shareholders without receiving any additional payment from them…
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The disadvantages of issuing bonus shares are:…
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The advantages of issuing bonus shares to the shareholders and creditors are as follows:-
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Securities and Exchange Board of India (SEBI) guidelines are to be followed for issue of bonus shares:-
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