Corporate actions – bonus share issue
A bonus share issue (sometimes referred to as ”Scrip Issue”) is an issue of free shares, paid for by the issuing company from their capital reserves. The purpose is to increase the liquidity of the company’s shares in the market, by increasing the number of shares in circulation (which reduces the share price). Bonus shares are issued according to a ratio: n shares for each share you currently hold.
The issue of Bonus Shares represents an increase in the total number of shares on issue, but as the value of the company .
To record an issue of bonus shares, click CORPORATE ACTIONS on the ASSETS menu, then BONUS SHARE.
The following screen will be displayed.
Note: The below screens are for example purposes only. It is not intended to suggest that Woolworths made a bonus share issue on that date (or at any time).