Bonus Issue

A 1:1 bonus, also known as a 1-for-1 bonus issue, is a corporate action where a company issues one additional share for every existing share held by its shareholders. Key aspects of a 1:1 bonus issue: 1. Share capital increase: The company's share capital doubles. 2. No cash outflow: Shareholders don't pay for the additional shares. 3. Share price adjustment: The share price typically halves to reflect the increased number of shares. 4. No change in ownership percentage: Shareholders' ownership percentage remains the same. Example: Before the 1:1 bonus issue: - Share price: 100 - Shares outstanding: 1 million - Shareholder A holds: 100 shares After the 1:1 bonus issue: - Share price: 50 (adjusted) - Shares outstanding: 2 million - Shareholder A holds: 200 shares (100 original + 100 bonus shares)