The correct answer is: B. Existing equity shareholders
Bonus shares are shares issued by a company to its existing shareholders, without any additional payment. The number of bonus shares issued is usually proportional to the number of existing shares held by each shareholder.
Bonus shares are a way for companies to increase their equity without raising any new capital. They can also be used to reward existing shareholders or to make the share price more attractive to investors.
Option A is incorrect because bonus shares are not issued to workers in lieu of their share in profit. Workers are usually paid a salary or wage, and they may also be entitled to bonuses or other forms of compensation.
Option C is incorrect because bonus shares are not issued to existing preference shareholders. Preference shareholders have a prior claim on the company’s profits and assets, and they are not usually entitled to bonus shares.
Option D is incorrect because bonus shares are not issued to existing equity shareholders and preference shareholders both. Bonus shares are only issued to existing equity shareholders.