Stock Split & Bonus Shares

Stock Split and Bonus Shares are both corporate actions that companies undertake to manage their share capital and make their stock more accessible or attractive to investors. 

What is Bonus Share?

Bonus shares are additional shares that a company gives to its shareholders without any cost. It is the share of profits that are not given out in the form of dividends but are converted into free shares.

For example, a Bonus of 4:1 means 4 extra shares for every share held by you.

Check out StockEdge to track which companies have announced Bonus Shares.

What is Stock Split?

A stock split increases the number of shares of a company, but the market capitalization remains the same. Due to an increase in the number of shares, the price per share decreases.

For example, a 4-for-1 stock split means you will get an additional 3 shares for every share held.