Multiple choice

Which of the following dividends is also known as issue of bonus shares?

  1. Cash dividend

  2. Property dividend

  3. Stock dividend

  4. None of these.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is the stock dividend, which is also known as issue of bonus shares. In the stock dividend, the company issues additional or bonus shares in proportion to their existing equity shares in the company. Hence, stock dividend is also known as issue of bonus shares.