Stock Distribution

Bonus Issue (Scrip Issue)
A bonus issue is the issuance of additional shares to existing shareholders at no cost, based on the number of shares that a shareholder already owns. It's also known as a scrip issue.
Capitalization Issue
A capitalization issue, also known as a scrip issue, involves a company issuing new shares to existing shareholders, usually to bolster additional funds or to distribute reserves.
Free Issue
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.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.