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Bonus issue
When a company transfers money from its reserves to its permanent capital it makes a free issue of shares to shareholders. These new shares are then distributed to the existing holders in proportion to their existing holdings. Also known as capitalization issue, a free issue and a scrip issue.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: General Finance
- Company: Reuters
- Product:
- Acronym-Abbreviation:
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