Corporate Actions
Bonus Issue
Definition
What is Bonus Issue?
An issue of additional shares to existing shareholders without a cash payment.
Example in practice
How This Looks in Practice
A one-for-five bonus issue gives an investorA person or organisation that commits capital with the expectation of a financial return. one extra share for every five held.
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Related Terms
Corporate Actions
Rights Issue
An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.
Corporate ActionsStock Split
An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.
Corporate ActionsReverse Stock Split
A reduction in the number of shares accompanied by a proportional increase in price per share.
Corporate GovernanceProxy Vote
A vote cast by another person or electronically on behalf of a shareholder.