Bonus Shares - Meaning, Types, Advantages and Disadvantages (2024)

TABLE OF CONTENT

  • What are Bonus Shares?
  • Who is Eligible for Bonus Shares?
  • Advantages of Bonus Shares
  • Disadvantages of Bonus Shares
  • Types of Bonus Shares

Bonus Shares – Meaning, Types, Advantages and Disadvantages

FAQS

  • Does the issue of bonus shares enhances the company’s value?
  • YES. The issue of bonus shares enhances the company's value and increases positions and image in the market, gaining the trust of existing shareholders and attracting several small investors to be a part of the stock market.

  • Who is Eligible for Bonus Shares?
  • Shareholders who own the company's shares before the ex-date and record date are eligible to receive bonus shares from the company.

  • What is Ex-Date?
  • The ex-date is one day before the record date. Here an investor has to buy the shares at least one day before the ex-date to become eligible for the bonus shares.

Bonus Shares - Meaning, Types, Advantages and Disadvantages (2024)
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