What is bonus shares?Bonus Shares

Profits or reserves turned into new shares and given free to shareholders in proportion: more shares, a proportionally lower price and the same total value.

Learn “bonus shares” in an animated lesson

Stock Basics
Dividends and Ex-Dividend Dates
When a company pays a dividend, the price is "cut" by that amount on the ex-dividend date. See why a dividend isn't free money, and why bonus shares don't change total value.

Related terms

dividend
ex-dividend / ex-rights
record date
gap fill
dividend tax

See how “bonus shares” works for yourself with an animation you can drag and play.

Go to “Dividends and Ex-Dividend Dates”