Often called a "free" or scrip issue, a bonus issue is a book-keeping transaction that transfers money from a company's reserve to its capital. Existing share prices fall to reflect the greater number issued.
Also known as a capitalisation or scrip issue. This is when a company issues free shares to a company's existing shareholders. No money changes hands and the share price falls pro rata. This is usually used as an exercise to make the shares more marketable (i.e. cheaper per share and therefore more attractive to small investors).
or scrip issue or capitalisation issue - British names for new shares issued to shareholders instead of a dividend.
A free issue of shares to existing shareholders in proportion to their existing shares. This is the same as a Scrip Issue, but is not the same as a scrip dividend.
The issue of new shares to existing shareholders at no charge in proportion to their existing shareholdings. It is basically a bookkeeping exercise.... more on: Bonus issue
'Free' share issued to shareholders in proportion to their holdings, either n addition to or in place of dividends. (Effectively a share split).
Distribution of capital funds to shareholders in the form of shares for which payment is not required.
If a company offers free shares to its shareholders in proportion to their existing shareholdings, it is called a bonus issue (or a scrip issue). The company accounts for it in its books by transferring the face value of the shares from the reserves to issued share capital.
Additional shares issued by the company to existing shareholders for free, usually in a pre-determined ratio to the number of shares already held.
Also known as a capitalisation or scrip issue of free shares to an investor. Watch for the complication of the consequent adjustment to the company's share price.
Additional shares are issued to existing shareholders free according to the proportion of their holding, usually as a result of capital reorganisation. A Bonus Issue raises no new funds for the company and is sometimes called a 'Capitalisation Issue'.
A bonus issue is the issue of new shares to existing shareholders free of charge. This is also known as a scrip or capitalisation issue. It is a process for converting money from the company's reserves into issued capital. Shareholders do not pay for the new shares and appear to be no better off, although the issue of new shares might help the share price by creating greater liquidity.
A distribution of additional shares to existing shareholders. The share price usually falls after a bonus issue.
shares in a company which are issued free to existing shareholders. Often made in lieu of a dividend payout.
An issue where shares are given to existing shareholders without charge in proportion to the number of shares already owned. Synonymous terms are scrip issue, capitalisation issue, cap issue and free issue. A common effect of such an issue is to improve the level of liquidity in a stock by lowering the price per share and, thus, stimulating retail investor appetite.
The issue of further shares, at no additional cost, to current shareholders
Distribution of funds to shareholders in the form of shares, issued free.
Accumulated profits which are converted into issued shares. The existing members are given them, for example one bonus share may be given for every five already held. Also known as capitalisation or scrip issue.
A free issue of shares to existing shareholders, usually in a predetermined ratio, eg 1 for 4, made from reserves or a revaluation of assets.
The issue of bonus or free shares to existing shareholders, usually at a predetermined ratio, for example, one bonus share for every three shares held.
Or, in the USA, a stock split. Whenever a company believes that the price per share of its stock has risen to a point where investors may wrongly perceive it as "expensive", they will split the stock, reducing the price but increasing the number of shares outstanding. For instance, if Huge Fruit Plc trades at £60 a share with three million shares outstanding and decides to split its stock two-for-one, this means that each share will now trade at £30 but there will be six million shares outstanding.
The issue of shares to existing shareholders on a pro rata or equal basis i.e. a ratio such as 1:5 being one new share for every five held. No payment is required for these shares.
Also known as a share split. This is a purely cosmetic exercise where a company issues bonus shares to existing shareholders to give them more shares at a lower price. UK companies often split their shares when they go above £10; in the USA the threshold is usually $100. Many US technology companies split their shares repeatedly in the boom and hence have dropped to very low single figure dollar prices after the crash.
The issue by a company of new shares which do not require any payment to be made by the shareholder. This has the effect of making the company's shares more marketable because of the increased number available and the lower market price.
Shares distributed to shareholders at no cost as a result of a capital increase arising from the incorporation of reserves or profits.
The issue of new shares to an existing shareholder at no extra cost to the shareholder.
Free shares are given in a certain ratio to existing shareholders. Also known as Capitalisation, Stock Split
A free issue of extra shares to shareholders by a company. This is often done when the share price has risen so high that they become too expensive to buy for the smaller investors.This is also known as a 'scrip' or 'capitalisation' issue.
The issue of bonus or free shares to existing stockholders.
A free issue of shares to a company's existing shareholders. No money changes hands and the share price falls pro rata. It is a cosmetic exercise to make the shares more marketable. Also known as a capitalisation or scrip issue.
Sometimes called a Capitalisation Issue. The issue of new shares to an existing shareholder, but at no extra cost. It is a means for the company to distribute historic retained profits to shareholders. Compare with Rights Issue. See also Scrip Issue.
Shares of stock given as a bonus to present stockholders, usually free of cost. Also known as stock dividend.
Free shares issued by a corporation to current shareholders.
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 issue would mean that a shareholder would receive one free share for every four existing shares they own in the company. The impact of a bonus issue is to reduce the share price, since the same total market capitalisation is being spread over a larger number of shares. This may have a beneficial impact in terms of liquidity of trading.