A bonus share is a free share of stock given to current shareholders in a company, based upon the number of shares that the shareholder already owns. While the issue of bonus shares increases the total number of shares issued and owned, it does not change the value of the company. Although the total number of issued shares increases, the ratio of number of shares held by each shareholder remains constant.
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Famous quotes containing the word share:
“He was as jealous of his power as an impotent lover of his mistress, without activity of mind enough to enjoy or exert it, but could not bear a share even in the appearances of it.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)