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:
“As with our colleges, so with a hundred “modern improvements”; there is an illusion about them; there is not always a positive advance. The devil goes on exacting a compound interest to the last for his early share and numerous succeeding investments in them.”
—Henry David Thoreau (1817–1862)