Bonus Issue of Shares: Increasing Total Shares Without Raising Capital
In the intricate world of stock markets, companies employ various strategies to enhance shareholder value and manage equity distribution. One such strategy is the bonus issue of shares. This mechanism helps increase the total number of shares in a company without raising new capital. While not directly involving monetary transactions, it's pivotal in the realm of equity management, impacting both shareholder portfolios and market perceptions.
Understanding Bonus Issue of Shares
A bonus issue of shares is a corporate action in which a company issues additional shares to its existing shareholders without any extra cost. The allocation is based on the number of shares each shareholder already owns. It is a way for companies to reward existing shareholders using accumulated profits without i...