Companies issue bonus shares to: Reward existing shareholders. Enhance stock liquidity by increasing the number of shares in circulation. Make the share price more affordable for new investors. Utilize retained…

A company announces a specific bonus ratio (e.g., 1:1, 2:1), meaning shareholders will receive additional shares based on their existing holdings. If the ratio is 1:1, shareholders get 1 additional…

A Bonus Issue refers to the issuance of additional shares to existing shareholders without any extra cost. It is done by capitalizing the company's free reserves or securities premium.