According to investopedia, A bonus issue is an offer of free additional shares to existing shareholders.
Shareholders expect company to pay dividends for their investments. Company may opt for bonus shares when companies are short of cash. It allows them as an alternative to increasing the dividend payout.
Whenever Company declares bonus share, the additional number of shares provided to investors has to be adjusted.
We have developed web app that allows you to know what your each share price will be after bonus adjustment.
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