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Which of the following is the main difference between a subdivision and a bonus issue? In...

Which of the following is the main difference between a subdivision and a bonus issue?

In a bonus issue, the paid-up share capital of the company increases while in a subdivision the paid-up share capital remains unchanged

In a subdivision issue, the paid-up share capital of the company increases while in a bonus issue the paid-up share capital remains unchanged

In a bonus issue, the described par value of the security would be divided by a factor determined by the company

In a subdivision, the described par value of the security would be divided by a factor determined by the company

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In a bonus issue, the paid-up share capital of the company increases while in a subdivision the paid-up share capital remains unchanged

In bonus issue,new shares are issued while existing shares are divided into smaller denominations under sub division and hence does not lead to an increase in paid up capital

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