Business, Legal & Accounting Glossary
Issue of shares to existing shareholders in proportion to shares already held. Raises no new finance but changes the mix of share capital and reserves.
A capitalisation issue, also known as scrip issue or bonus issue, is a form of secondary issue where a company’s cash reserves are converted into new shares and given to existing shareholders, or an issue of additional shares to shareholders in proportion to the shares already held.
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This glossary post was last updated: 10th August, 2019 | 35 Views.