A free issue, also known as a scrip issue, is a process wherein a company issues additional shares to its existing shareholders without any extra cost, based on the number of shares that shareholders already own.
A scrip issue, also known as a bonus issue, capitalization issue, or free issue, involves the issuance of new shares to existing shareholders to reflect accumulated profits in the reserves of a company. This process converts company reserves into issued capital without requiring shareholders to pay for the new shares.
