Bonus Issues
Interactive

Bonus Issues

Intuition Publishing Pty Ltd
Updated Sep 25, 2020

A bonus issue is an issue of new shares to existing stockholders, which are issued without charge as an accounting exercise by the corporation. The issuance of new shares to existing stockholders is why bonus issues are sometimes referred to as a scrip/capitalization issues. The motivations for companies to award bonus issues are explored as is the effect of bonus issues on the market capitalization of the underlying stock.

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