What is Bonus issue?

What is Bonus issue?

A bonus share is a free share of stock given to current shareholders in a company, based upon the number of shares that the shareholder already owns. While the issue of bonus shares increases the total number of shares issued and owned, it does not change the market capitalization of the company.
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    • What are the types of corporate actions?

      The different types of corporate actions announced by a company are: Rights issue Dividend Stock Split Conversion of debentures into shares Amalgamation Merger Demerger Capital reduction / Consolidation of shares Buy Back Bonus Open Offer
    • Who is eligible for bonus shares?

      Shareholders who own shares of the company prior to the record date set by the company are eligible for bonus shares.
    • What are Rights Issue?

      When a company wants to raise capital, issue of fresh shares to the existing shareholders is one option available to the company. In such an issue, existing shareholders have the right to buy a specified number of new shares of the company at a ...
    • What to do if clients profit and loss report seems to be incorrect?

      The P & L can be incorrect only under the following circumstances : Corporate actions - such as Bonus, Splits, Rights issue, Merger, Spin-Offs, Buyback. Discrepant quantities not entered or entered incorrectly for off-market transfer of shares and ...
    • When will the Bonus shares be credited in my demat account?

      The bonus shares will get credited in your demat account 10-15 days after the record date.