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What is bonus?

A bonus issue is like a 🎁 from a company to its shareholders! It comes in the form of free shares that they receive against the shares they already own. These gifts are usually given in specific ratios, such as 1:1, 2:1, 3:1, and so on.

So, for example, if you own one share, and the company announces a 1:1 bonus issue, you'll receive an additional share for free! 🤑 If it's a 2:1 bonus issue, you'll receive two additional shares for every share you already own.

Check out the video for a clearer explanation!
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