What is a “Bonus Share”?



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What is a “Bonus Share”?

2 Answer(s)


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It is the corporate action in which free additional shares to existing shareholders are issued in proportion of existing owned shares.

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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 value of the company.