16 Which of the following best describes what a bonus issue is?

A scheme where existing shareholders are offered the opportunity to increase their shareholding, at a discount to the current market price of the shares, in proportion to their existing shareholdings

A scheme where, after the conclusion of an IPO, members of the public are invited to apply for shares to be issued during a subsequent capital raising

A scheme where existing shareholders are given more shares in a company, at no cost to the shareholder

A scheme where a company makes an issue of shares directly to a chosen investor, instead of soliciting applications from the general public