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HomeEducation Education How is stock split different from a bonus issue of shares? How is stock split different from a bonus issue of shares?

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How is stock split different from a bonus issue of shares?

How is stock split different from a bonus issue of shares?

Friday, May 26, 2017, 4:20 PM
A company announces a bonus issue when its cash reserves increase and it decides to convert the increased value into shares. Thus the shareholder gets a bonus share free of cost. While in a stock split only the number of shares increase, in a bonus issue the number of shares and share value both increase.
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