bonus issue
(capitalization issue, scrip issue) A method of increasing a company’s issued capital (see authorized capital) by issuing further shares to existing company members. These shares are paid for out of undistributed profits of the company, the share premium account, or the capital redemption reserve. The bonus issue is made to shareholders in proportion to their existing shareholding (e.g. a 1 for 2 bonus issue means that shareholders receive an extra free share for every two shares they hold).

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