In this video, we will learn about Bonus Shares. Bonus share is additional share offered to existing shareholders based on the number of shares they hold but without changing the total market capitalization, and these are distributed at no additional cost. These earnings are converted into free shares. This video also explains how bonus shares is an indirect benefit to the companies as it encourages retail participation and it also gains the confidence of customers. Bonus shares are beneficial in the long run for the companies. Additionally, bonus shares are tax-free and do not change the face value, unlike stock split. Check our complete #ImarticusPrograms playlist here: https://bit.ly/2JP52hM Subscribe to our channel to get video updates.
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