21
Question
What are the uses of securities premium?
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Solution
Securities premium can be used for these activities:
1. Issuing fully paid up bonus shares to existing shareholders.
2. Writing off expense of issue of shares and debentures, such as discount given on issue of shares.
3. Writing off preliminary expenses
4. Buying back shares
5. For paying premium payable on redemption of debentures.
Securities premium can be used for these activities:
1. Issuing fully paid up bonus shares to existing shareholders.
2. Writing off expense of issue of shares and debentures, such as discount given on issue of shares.
3. Writing off preliminary expenses
4. Buying back shares
5. For paying premium payable on redemption of debentures.
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