InvestorQ : share premium cannot be used to
Hrisha Chhedaiya made post

share premium cannot be used to

Answer
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Anu Biswas answered.
3 months ago


share premium is the free reserves of the company. While share premium cannot be used to pay cash dividends it can surely be used to issue bonus shares so as to reduce the price of the stock and bring it within a broader reach. That is what the share premium account is normally used for in the Indian context.