What is a bonus share?

and Bonus share concerns free shares of shares that are extended to current shareholders of the company without having to actually buy additional shares, or any type of fees to cover shares. In most cases, the expansion of this type of stock is based on the current number of shares in the possession of the shareholder. If the company decides to expand bonus shares to shareholders who meet a specific qualification, this is referred to as a bonus problem. For example, shares must not be issued for all types or stock classes. Instead, only some stock classes can be able to obtain some. It is often necessary for the company to achieve a certain net wealth or preliminary level of profitability before the companies will enable documents to implement a bonus share program.

It is important to realize that when a bonus share of stocks is issued, it increases the total number of shares that KTEré is in possession of an individual shareholder. However, the issue of such a share does not increase the value of society. Since the company had to reach a given level of value before one bonus share could be issued, the share simply changes the ratio or the percentage of the number of shares issued by each qualified investor.

In the long run, bonus shares are beneficial to companies and shareholders. For shareholders, the possession of other shares of shares, which are expected to appreciate the value over time, which has the potential to increase the value of the investment portfolio. For the company, the ability to seize the issue of a bonus share means that the company's profit has reached a new maximum and that the outlook for the future is very clear.