Stock Terms
Bonus Shares
Bonus shares are additional shares given to existing shareholders free of cost, proportional to their holdings. It increases share count without changing total value.
Example
1:1 bonus means 1 free share for every share held.
Related terms
Stock Split
A stock split divides existing shares into multiple shares, reducing the price proportionally. Total investment value remains unchanged.
Dividend
A dividend is a distribution of a portion of a company's earnings to shareholders. Dividends are typically paid quarterly and can be in cash or additional stock.