A shareholder in Company C owns 1,000 shares bought for $1 each. The company decides to make a bonus issue of one new share for every two existing shares held. How many shares does the shareholder now have in Company C?
A) 1,500 shares
B) 2,000 shares
C) 500 shares
D) 1,000 shares

Question

Quizplus · Accepted Answer

The shareholder originally owns 1,000 shares. With a bonus issue of one new share for every two existing shares held, they receive 1,000 / 2 = 500 additional shares, making their total 1,000 + 500 = 1,500 shares.

A Shareholder in Company C Owns 1,000 Shares Bought for $1