Bonus Issue

Submitted by Sharemarket News on 19 April, 2011 - 14:22

A bonus issue (also called capitalisation issue, bonus shares, scrip issue) is shares given to shareholders free. These are shares you do not have to pay for and a means for the company to distribute historic retained profits. No cash changes hands between investors, so this is an accounting transaction. Bonus issues can boost the marketability of stock.

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