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Bonus
shares |
Bonus
shares shares |
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Bonus shares means new shares given
free of cost to all the existing shareholders of the company, in proportion
to their holdings |
Rights issues are a proportionate
number of shares ava Bonus shares ilable to all the existing shareholders of
the company, which can be bought at a given price (usually at a discount to
current market price) for a fixed period of time. |
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For example, a company announcing
bonus issue of 1:5, is issuing one (new) bonus share for every five shares
held by the shareholders of the company. |
For example, a company announcing
rights issue of 2:3 at Rs. 100 per share (current share price Rs. 130 per
share), is issuing two (new) rights shares for every three shares held by the
shareholders of the company at Rs. 100 per share. |
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bonus shares are given for free |
In right issue one has to pay for the
shares allotted |
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Bonus means free additional shares. |
In Rights Issue, some costs are
involved and the shareholders can either subscribe or unsubscribe |
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Bonus issues are generally associated
with an investor being issues with extra shares than what they paid for |
Rights Issues are issued to existing shareholders
of a company when that company decides to raise more capital via issuing new
shares. |