Difference between revisions of "Bonus Issue"
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'''Bonus Issue'''. Event in which security holders are awarded additional assets free of payment from the issuer in proportion to their holding. These may be from current profits or may be from accumulated reserves of the company. | '''Bonus Issue'''. Event in which security holders are awarded additional assets free of payment from the issuer in proportion to their holding. These may be from current profits or may be from accumulated reserves of the company. | ||
| − | There are different taxation rules for the Bonus Issue compared to the Dividend. There could also be a difference in the ranking of the shares that are given, to what the holder already holds. Always announce the event on the ones that they hold, and based on the holding they are given additional shares. They may be of a different ranking. Bonus Issues increase the capital base but not the capital value of the company, since all they are doing is diluting the share capital. Difference from Dividend: Increases holding of shareholder. Other similar terms: Awards; Also see difference between Dividend and Bonus. Dividend is from current profits and bonus may be from accumulated reserves of the company. Separate this into 2 terms. We have: Capitalisation Issue Bonus rights Issue Original SWIFT definition - | + | There are different taxation rules for the Bonus Issue compared to the Dividend. There could also be a difference in the ranking of the shares that are given, to what the holder already holds. Always announce the event on the ones that they hold, and based on the holding they are given additional shares. They may be of a different ranking. Bonus Issues increase the capital base but not the capital value of the company, since all they are doing is diluting the share capital. Difference from Dividend: Increases holding of shareholder. Other similar terms: Awards; Also see difference between Dividend and Bonus. Dividend is from current profits and bonus may be from accumulated reserves of the company. Separate this into 2 terms. |
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| + | We have: Capitalisation Issue Bonus rights Issue Original [[SWIFT]] definition - stripped out synonyms for the formal definition above: "Attribution Gratuite (FR); Scrip Issue (GB); Capitalisation Issue. Security holders are awarded additional assets free of payment from the issuer in priportion to their holding." | ||
== Disclaimer == | == Disclaimer == | ||
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[[Category:Corporate Actions Events]] | [[Category:Corporate Actions Events]] | ||
| + | [[Category:SWIFT]] | ||
{{#set: isDefinedBy | https://spec.edmcouncil.org/fibo/ontology/CAE/CorporateEvents/CorporateActionsEvents/index-en.html }} | {{#set: isDefinedBy | https://spec.edmcouncil.org/fibo/ontology/CAE/CorporateEvents/CorporateActionsEvents/index-en.html }} | ||
__SHOWFACTBOX__ | __SHOWFACTBOX__ | ||
Latest revision as of 10:41, 15 June 2021
Definition
Bonus Issue. Event in which security holders are awarded additional assets free of payment from the issuer in proportion to their holding. These may be from current profits or may be from accumulated reserves of the company.
There are different taxation rules for the Bonus Issue compared to the Dividend. There could also be a difference in the ranking of the shares that are given, to what the holder already holds. Always announce the event on the ones that they hold, and based on the holding they are given additional shares. They may be of a different ranking. Bonus Issues increase the capital base but not the capital value of the company, since all they are doing is diluting the share capital. Difference from Dividend: Increases holding of shareholder. Other similar terms: Awards; Also see difference between Dividend and Bonus. Dividend is from current profits and bonus may be from accumulated reserves of the company. Separate this into 2 terms.
We have: Capitalisation Issue Bonus rights Issue Original SWIFT definition - stripped out synonyms for the formal definition above: "Attribution Gratuite (FR); Scrip Issue (GB); Capitalisation Issue. Security holders are awarded additional assets free of payment from the issuer in priportion to their holding."
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
