Bonus issue

    Bonus Share Issue

    Basics of Stock Market

    Free additional shares given to existing shareholders in proportion to their holding, capitalising reserves. No cash changes hands and total value is unchanged.

    Why it matters

    A 1:1 bonus doubles share count and halves the price. It improves liquidity and signals confidence, but creates no economic value by itself.

    Indian example

    Related terms

    Stock splitRights issue

    Learn the concept

    Equities (NSE, BSE, IPO process) →

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