A bonus issue is the issuance of additional shares to existing shareholders at no cost, based on the number of shares that a shareholder already owns. It's also known as a scrip issue.
A scrip issue, also known as a bonus issue, capitalization issue, or free issue, involves the issuance of new shares to existing shareholders to reflect accumulated profits in the reserves of a company. This process converts company reserves into issued capital without requiring shareholders to pay for the new shares.
