What is a bonus share?
Market Basics
A bonus share is an additional share given free to existing shareholders, in a fixed ratio, funded from the company’s accumulated reserves.
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In a 1:1 bonus issue, a shareholder holding 100 shares receives 100 additional shares at no cost. While the number of shares increases, the company’s overall market value and your proportional ownership stay the same — often seen as a signal of management confidence.
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