Bonus shares are additional shares issued to existing shareholders of a company at no extra cost, based on the number of shares that a shareholder already owns.
A free issue, also known as a scrip issue, is a process wherein a company issues additional shares to its existing shareholders without any extra cost, based on the number of shares that shareholders already own.
A share premium account records the amount received by a company over and above the par value of its shares. Such balances are used for specific purposes under regulatory stipulations.
