What is a Bonus Shares in Indian Stock Market ?
Meaning of Bonus Share in Indian Stock Market. Definition: Bonus shares are extra offers given to the present investors with no extra cost, in light of the quantity of offers that an investor claims. These are organization's gathered income which are not given out as profits, yet are changed over into free offers. Portrayal: The fundamental rule behind extra offers is that the all out number of offers increments with a consistent proportion of number of offers held to the quantity of offers extraordinary. For example, if Investor A holds 200 offers of an organization and an organization announces 4:1 reward, that is for each one offer, he gets 4 shares for nothing. That is all out 800 offers for nothing and his absolute holding will increment to 1000 offers. Organizations issue extra offers to empower retail investment and increment their value base. At the point when cost per offer of an organization is high, it ends up hard for new financial specialists to purchas...