The process whereby money from a company's reserves is converted into issued capital and then distributed to shareholders as new shares, in proportion to their original holdings, also known as bonus or scrip issue.
Also known as a scrip issue, a bonus 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 an a basis pro-rata to existing holdings.
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: Capitalisation issue