See bonus issue
————
(Also scrip issue / bonus issue) Euroclear Clearing and Settlement glossary
Security holders are awarded additional assets free of payment from the issuer in proportion to their holding. A bonus issue is typically represented by shares, rights or warrants. Nominal value does not change. Holders may be offered choice of form. Euroclear Clearing and Settlement glossary
————
The process whereby money from a company's reserves is converted into issued capital, which is then distributed to shareholders as new shares, in proportion to their original holdings. Also known as a bonus issue or scrip issue. Exchange Handbook Glossary
————
The issue by a company of new shares which do not require any payment to be made by the shareholder. This has the effect of making the company's shares more marketable because of the increased number available and the lower market price. A capitalisation issue is the same as a bonus issue and scrip issue. London Stock Exchange Glossary
Financial and business terms. 2012.