What is a Bonus Share?
A. A Share issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. Q. What is a Bond? A. A Bond is a promissory note issued by a company or government to its lenders. A Bond is evidence of debt on which the issuing company usually promises to pay the bondholder a specified amount of interest at intervals over a specified length of time, and to repay the original loan on the expiration date. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. Q. What is a Debenture? A. It is a Bond issued by a company bearing a fixed rate of interest usually payable half-yearly on specific dates and principal amount repayable on a particular date on redemption of the debentures. Debentures are normally secured/charged against the asset of the company in favor of debenture holder. Q. What is a Stock Exchange? A. A Stock Exchange is a plac
A bonus share refers to free shares of stock that are extended to the current shareholders of a company, without the need for the shareholder to actually purchase the additional shares, or incur any type of fees to cover the acceptance of the shares. In most cases, the extension of a bonus share or shares is based on the current number of shares in the possession of the shareholder. When a company determines to extend bonus shares to shareholders who meet the qualifications required to receive a bonus share, this is referred to as a bonus issue. Generally, the bylaws and other legal documents related to the establishment and operation of the company will include specific provisions that relate to the creation of a bonus share issuance. For example, the bonus share may not be issued for all types or classes of stock. Instead, only certain classes of shares may be subject to the issuance of a bonus share. Often, it is necessary for a company to reach a certain net worth or a prearranged
