Bonus Issue Vs. Stock Split Option: Which One Is The Best Option For The Company?

Feb 13, 2023

cfajournal.org

Whether to opt for a bonus issue or a stock split ultimately depends on the specific goals and circumstances of the company. A bonus issue is a way for a company to distribute additional shares to its existing shareholders, typically proportionate to their current holdings. This can increase the liquidity of the company’s shares and can make them more accessible to a broader range of investors.