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18 March, 2022

Difference between Bonus shares Bonus shares shares

 

 

Bonus shares

Bonus shares shares

 

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.

 

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.

 

bonus shares are given for free

In right issue one has to pay for the shares allotted

 

Bonus means free additional shares.

In Rights Issue, some costs are involved and the shareholders can either subscribe or unsubscribe

 

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.