Free Reserves
Total reserves held by a bank less the reserves required by the authority.
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Free reserves
Definition:
Excess reserves minus Member bank borrowings at the Fed. ...
Free Reserves: Excess reserves less bank borrowings at the Federal Reserve discount window.
FTC: Federal Trade Commission.
But bonus shares are issued to the existing shareholders by converting free reserves or share premium account to equity capital without taking any consideration from investors.
Bonus shares do not directly affect a company's performance.
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