Bonus Issue


DEFINITION of 'Bonus Issue'

An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.

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.

  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Halted Issue

    A planned security offering that does not go forward as planned. ...
  4. Golden Parachute

    Substantial benefits given to a top executive (or top executives) ...
  5. Stock

    A type of security that signifies ownership in a corporation ...
  6. Junior Issue

    A corporate security that ranks lower in claim to another corporate ...
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