Definitions for "Bonus Issue"
Keywords:  scrip, rata, shareholder, risen, pro
This is where extra shares are given at no cost to existing shareholders.
See Capitalisation Issue
Shares in a company that are issued free to existing shareholders, sometimes called a 'scrip issue'. A company might make a bonus or scrip issue as an alternative to increasing its dividend payout. New shares are issued to shareholders in proportion to their holdings, for example, one bonus share for every five shares held.
a signal that the company is in a position to service its larger equity