Scrip Issue (Bonus Issue)

 

 

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Scrip Issue (Bonus Issue)

 

Financial glossary

 

The following text is used only for educational use and informative purpose following the fair use principles.

Finance

 

Definition of scrip issue (bonus issue)

 

Scrip Issue (Bonus Issue): An issue to existing shareholders of new shares, at no cost. Usually intended to improve marketability of the shares and reduce the share’s quoted value to a more reasonable level, increasing the number of shares in issue and enhancing the liquidity in the market. A 2 for 5 scrip issue, for example, means the issue of 2 new shares to the existing shareholder for every 5 currently held.

 

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Glossary of financial terms

 

Financial glossary index of law terms

 

 

Definition and meaning of scrip issue (bonus issue)

 

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