Also known as a "scrip issue" or "capitalization issue".
New shares are issued to shareholders in proportion to their holdings. For example, the company may give one bonus share for every five shares held.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
bonus issue — Also known as a scrip issue or capitalisation issue. An issue of new shares to existing shareholders in the same proportions as their existing holdings. Although the shareholders do not pay for the new shares they are not receiving something for… … Law dictionary
bonus issue — noun An issue of additional shares (bonus shares) to a company s shareholders in proportion to their existing shareholding, representing a capitalization of reserves • • • Main Entry: ↑bonus … Useful english dictionary
bonus issue — Also known as a scrip issue, a capitalisation issue, a free issue or a gratis issue. It is the issue of new fully paid shares in a company to existing shareholders for free on a basis pro rata to existing holdings. For example, a 1 for 4 bonus… … Financial and business terms
bonus issue — (Also scrip issue / capitalisation issue) Security holders are awarded additional assets free of payment from the issuer in proportion to their holding. A bonus issue is typically represented by shares, rights or warrants. Nominal value does not… … Euroclear glossary
bonus issue — /ˈboʊnəs ɪʃu/ (say bohnuhs ishooh) noun a free issue of shares to shareholders of a company; scrip issue. Also, bonus … Australian English dictionary
bonus issue — /ˌbəυnəs ɪʃu:/ noun a scrip issue or capitalisation issue, where a company transfers money from reserves to share capital and issues free extra shares to the shareholders (the value of the company remains the same, and the total market value of… … Dictionary of banking and finance
bonus issue — noun Brit. an issue of additional shares to shareholders instead of a dividend … English new terms dictionary
bonus issue — See: scrip issue … Accounting dictionary
bonus issue — (U.K.) Fin additional shares of stock in a company given by the company to existing shareholders in proportion to their prior holding … The ultimate business dictionary
bonus shares — bonus issue Shares issued to the existing shareholders of a company following a scrip issue The number of shares received depends on the level of the shareholding prior to the bonus issue. The number of bonus shares is usually one share for a… … Big dictionary of business and management