bonus issue
noun

a scrip issue or capitalisation issue, in which a company transfers money from reserves to share capital and issues free extra shares to the shareholders. The value of the company remains the same, and the total market value of shareholders' shares remains the same, the market price being adjusted to account for the new shares.

Also called share split
(Note The US term is stock split.)
Browse by Subjects
capitalisation issue
qualifying shares
free issue
scrip issue
See All Related Terms »

Coverdell Education Savings Account (ESA)
tax point
quorum
state bank
U.S. Treasury inflation-protected securities (TIPS)