bonus shares


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 specified number of shares held before the issue. For example, if the specified number is four this would be denoted as a 1:4 bonus issue. It is also possible to have a 2:1 bonus, when two shares are issued for every one held.

Big dictionary of business and management. 2014.

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