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What is bonus in stock market?

Updated: 8/16/2019
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15y ago

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A bonus share is nothing but free shares of the company in which you already hold shares that are given to you by the company for being a share holder of the company. Lets say you hold 100 shares of XYZ company and the company declares a 1:1 bonus (that is you get 1 share for every 1 share of that company you hold) So once the bonus is declared, you would be holding 200 shares instead of 100. you had bought only 100 the extra hundred is the bonus.

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