More about bonuses

[Coldicote]

I don't understand how bonus shares come into being. Where do they come from and if not accepted then who would they belong to?

[HowardKennitby]

I imagine they would be created when the bonus was to be paid. If not needed they would not be created.

[dzug2]

Some companies may own some of their own shares so they are available for issue or sale when needed

[Coldicote]

Thanks. You are both probably right, though it's still a mystery to me how shares worth millions can be so readily found to give away.

[vulcan]

I know nothing about shares so excuse me if this is a stupid question. If extra shares are created when needed, doesn't that devalue the existing shares ?

[factor-fiction]

Yes, vulcan- if new shares are created it dilutes the value of the remaining shares, although the effect of creating a million shares is almost unnoticeable when there are billions of RBS shares around

[vulcan]

Thank you Factor.