More about bonuses

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?
17:24 Mon 30th Jan 2012
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I imagine they would be created when the bonus was to be paid. If not needed they would not be created.
Some companies may own some of their own shares so they are available for issue or sale when needed
Question Author
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.
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 ?
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
Thank you Factor.

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