Do bonus shares impact capital accretion?

Question

Accepted Answer

Yes, bonus shares impact capital accretion.

Bonus shares increase the number of outstanding shares without affecting the company's capital.
The capital accretion is not directly impacted by bonus shares as they are issued from the company's reserves.
However, bonus shares can indirectly impact capital accretion by increasing the liquidity and marketability of the company's stock.
Investors may perceive bonus shares as a positive signal, leading to an increase in demand and potentially driving up the stock price.
This increase in stock price can result in capital appreciation for existing shareholders.

Accepted Answer

No.

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