Question: ABC Ltd . , a well - established technology firm, recently announced a 1 : 1 bonus share issue, meaning that for every share an

ABC Ltd., a well-established technology firm, recently announced a 1:1 bonus share issue, meaning that for every share an investor holds, they will receive an additional share at no cost. The company's management explained that this decision was made to reward existing shareholders and improve liquidity in the stock market.
What happens to the market price of the share when a company issues a scrip/bonus share?
Unknown.
Lower price per share as the total shares will increase, but the total market value remains the same.
The price remains the same.
Higher price per share as the total shares will decrease, but the total market value remains the same.

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