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Bonus Issue

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Bonus Issue
The free distribution of new shares to existing shareholders. A bonus issue is most common when the issuer does not wish to increase its dividend when it is expected to do so, especially when it may be cash poor. Instead of the increased dividend, shareholders receive the additional shares. Shareholders receive the bonus issue in proportion to the number of shares they already own. A bonus issue is also called a scrip issue. See also: Antidilution Provision.
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Byline: ANI Coimbatore, Oct 16(ANI): Following the failure of two rounds of talks between National Textile Corporation (NTC) workers' union and management over Diwali bonus issue, the striking workers have sought Government intervention.
Striking textile workers in Coimbatore seek Government intervention by Asian News International
The company gave no reason for the bonus issue which came as a surprise to the market.
India's Reliance gains after bonus announcement by AFP / AFP South Asian Edition
Anger has swelled on the bonus issue, particularly in Europe, where French President Nicolas Sarkozy has led the charge to install mandatory caps.
Financial watchdog urges 'radical change' by AFP / AFP European Edition
 
 
 
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