Dividend and Bonus: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. Shares in a public limited company can be legally to another person.

2. A public limited company can commence business when the register of companies has issued a .

3. The memorandum of association is the of the company.

4. Unsecured debentures are also known as debentures.

5. Unclaimed dividends constitute a of the company.

6. Discount on issue of shares is recorded on the of a company’s balance sheet.

7. A discount on a share issue is classified as of loss.

8. Premium on a share issue is classified as profit.

9. Profit on shares is called a .

10. Expenses incurred to form a company are known as expenses.

Frequently Asked Questions

Which is better dividend or bonus?

For many companies, dividends and bonus issues are used as means of redistributing profits among shareholders. In a dividend issue, the company gives out extra money to shareholders from its net profits; in a bonus issue, the shareholders are given free shares.

How many types of dividends are there?

A bonus share is an additional share given to current shareholders for no cost based on the number of shares owned. These shares are a company’s accumulated earnings, which can come from profits or a company’s stock that was purchased.

How many types of dividends are there?

How many types of dividends are there?

Are dividends free money?

Dividends are not free money although in a yield-starved economy, many stock investors look to their cash dividends as a source of income.

Does bonus reduce share price?

Through the offer of bonus shares, a company’s total number of outstanding shares increases, but each share’s value decreases. The total market value remains unchanged.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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