What is right issue and bous issue

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Accepted Answer

Right issue and bonus issue are methods used by companies to raise capital by issuing new shares to existing shareholders.

Right issue is when a company offers existing shareholders the right to buy additional shares at a discounted price.
Bonus issue is when a company issues additional shares to existing shareholders for free, based on the number of shares they already own.
Both methods are used to raise capital without borrowing or taking on debt.
Right issues are often used to fund expansion or pay off debt, while bonus issues are used to reward shareholders and increase liquidity.
Companies must follow regulatory guidelines when issuing new shares, including obtaining shareholder approval and disclosing relevant information.

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