The correct answer is: B. Bonus share.
A bonus share is a share issued by a company to its existing shareholders, without any additional payment being made by the shareholders. The shares are issued out of the company’s reserves, which are accumulated profits that have not been distributed to shareholders as dividends.
Bonus shares are often issued to increase the number of shares in issue, which can make the company’s shares more attractive to investors. They can also be used to reward existing shareholders for their loyalty.
Right issues are a type of share issue that gives existing shareholders the right to buy new shares in the company at a discounted price. This is often done to raise new capital for the company.
Preference shares are a type of share that has a higher claim on the company’s assets and profits than ordinary shares. This means that preference shareholders are paid a fixed dividend before ordinary shareholders receive any dividends.
Therefore, the correct answer is B. Bonus share.