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Hey guys Welcome back!!!!! How are you all?? I am very glad after seeing your love to my previous articles. This motivates me to write more and more much I can. So today I am going to talk about bonus shares, their meaning and the rules and guidelines of SEBI on it. This article will help you in your studies, making investing decisions etc. So listen carefully….. Bonus shares: bonus shares are the free shares, given to the fully paid shareholders. Look when company is making profits year on year and these profits are transferred to reserves year on year, company may use this reserve basically for three purposes: 1) For distributing dividends   2) For expansion of its business   3) For issue of bonus shares . Now listen carefully…. As you know shareholders have right on profits ; ……if company is paying dividend then it will be an income for shareholder ………., if company opt for expansion then this will lead to growth in shareholder’s wealth in fut

Issue of shares  Hey guys Welcome back!!!! Today I am going to tell you about issue of shares . The learning objective of this article is to enrich your knowledge about issue of shares, the accounting treatment regarding the issue and rules mentioned in laws regarding the issue. So, this article will surely boost up your knowledge regarding the companies and shares. This will help you in your exams regardless of your class (it may be +2, CA, CS, graduation etc.) so listen carefully …  There are three types of companies: 1. Private company , 2. Public Company ; 3. One Person Company .   Only the Public company can issue its share to the public after fulfilling the certain legal compliances as per the Act and SEBI. Public company can issue shares either by Public Issue of Shares , by Private Placement of Shares , by Right issue , Bonus issue , Composite issue.  Let’s talk about the issues: 1) Public issue: when company issues shares to public at l

   Security Premium Reserve  (section 52) Hey guys  Welcome back!!!!!  Do you ever hear about security premium? OH what..? You have heard!!!!!!!   But you don’t know about it.     Don’t worry guys through this article you are going to know about what is security premium? And how we record it into accounts? And what companies act says about utilisation of security premium reserve?     Are you ready to listen? …… Yes!!!!!................ Good!!!!       So listen carefully, Your question: What is security premium in respect of issue of shares?  Me:   listen to me guys, as I talked to you in my previous articles company issues shares for getting capital, remembered... Yes? Good!!!!!!  Now listen company fix a issue price for a share it may be equal to its face value or more than the face value .     (face value means the book value of share, the value at which company will calculate its share capital or will provide dividend to shareholders a