See bonus issue. Dresdner Kleinwort Wasserstein financial glossary
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(Also bonus issue / capitalisation issue) Euroclear Clearing and Settlement glossary
Security holders are awarded additional assets free of payment from the issuer in proportion to their holding. A bonus issue is typically represented by shares, rights or warrants. Nominal value does not change. Holders may be offered choice of form. Euroclear Clearing and Settlement glossary
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See capitalisation issue Exchange Handbook Glossary
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A free issue of extra shares to shareholders by a company. This is often done when the share price has risen so high that they become too expensive to buy for the smaller investors. This is also known as a 'bonus' or 'capitalisation' issue.
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The issue by a company of new shares which do not require any payment to be made by the shareholder. This has the effect of making the company's shares more marketable because of the increased number available and the lower market price. A Scrip Issue is London Stock Exchange Glossary
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A free issue of shares to shareholders when a company transfers money from its reserves to its permanent capital. Changing reserves into permanent capital, or into new shares as part of the long-term funding of the business, makes the reserves more obviously and more accountably part of the shareholders' equity. The new shares are distributed to the existing holders in proportion to their existing holdings. Also known as a capitalization issue.
► See also Capitalization Issue.
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scrip issue UK US noun [C] STOCK MARKET
► FREE ISSUE(Cf. ↑free issue)
Financial and business terms. 2012.