Bonus shares are additional shares distributed by a company to its existing shareholders at no cost. The issuance is often based on the company's accumulated profits or reserves, and it aims to reward shareholders by increasing the number of shares they hold without requiring any cash payment. Bonus shares do not alter the overall value of an investor's holdings, but they make the stock more affordable for smaller investors and are typically seen as a positive signal about the company's financial health and future prospects.

What are Bonus Shares?