Bonus Issue

AAA

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".

INVESTOPEDIA EXPLAINS 'Bonus 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.


RELATED TERMS
  1. Shareholder

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

    A planned security offering that does not go forward as planned. ...
  3. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  4. Stock

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

    1. The process of offering securities as an attempt to raise ...
  6. Bonus

    1. Additional compensation given to an employee above his/her ...
Related Articles
  1. Investing Basics

    How And Why Do Companies Pay Dividends?

    If a company decides to pay dividends, it will choose one of three approaches: residual, stability or hybrid policies. Which a company chooses can determine how profitable its dividend payments ...
  2. Bonds & Fixed Income

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.
  3. Professionals

    What's the average salary of a bank teller?

    Read this article to find out more about average bank teller salaries, median hourly wage rates and potential future career prospects.
  4. Professionals

    What's the average salary of a business operations manager?

    Read about the average yearly salary of business operations managers, and find out which locations and industries offer the best pay for these professionals.
  5. Professionals

    What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels of compensation.
  6. Personal Finance

    What's the average salary of an operations research analyst?

    Learn how much operations research analysts at different experience levels make on average across the nation and in specific regions.
  7. Professionals

    What's the average salary of a financial advisor?

    Learn about average salaries for financial advisors. Explore different levels of compensation financial advisors receive based on skills and experience.
  8. Professionals

    What's the average salary of a compliance officer?

    Learn about compliance officers, the locations and industries in which compliance officers work and how much they earn on average.
  9. Professionals

    What's the average salary of someone with a finance major?

    Learn how much you can earn with a finance degree. Decide if a business career or finance career is more appealing for you based on average yearly salaries.
  10. Personal Finance

    What's the average salary of a loan officer?

    Read about the average yearly salary for a loan officer. Learn about what these professionals do and what determines their pay rate.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center