A bonus share issue does not actually transfer any value to the company's shareholders.

Question

Quizplus · Accepted Answer

A bonus share issue is essentially a distribution of additional shares to existing shareholders without any cash consideration. It does not increase the value of the company or the ownership percentage of each shareholder, although it may result in a dilution of their earnings per share if the additional shares are not accompanied by a corresponding increase in earnings.

A Bonus Share Issue Does Not Actually Transfer Any Value