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100 FAQ's on Basic Finance

Module Units

Stock Split & Bonus Shares

Stock split increases the number of shares of a company but the market capitalization remains the same. The price per share decreases due to an increase in the number of shares.


For example, a 4-for-1 stock split means you will get additional 3 shares for every share held.


Bonus shares are additional shares that a company gives to its shareholders without any cost. It is the share of profits that are not given out in the form of dividends but are converted into free shares.


For example, a Bonus of 4:1 means 4 extra shares for every share held by you.


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Units 52/101