capitalization 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.

capitalization issue

or

scrip issue

, the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS without any further payment being required. Capitalization issues are usually made when a company has ploughed back profits over several years and so has accumulated substantial RESERVES, or has revalued its fixed assets and accumulated capital reserves. If the company wishes to capitalize the reserves it can do so by creating extra shares to match the reserves, and issue them as BONUS SHARES to existing shareholders in proportion to their existing shareholdings. In the USA the term stock dividend is used to describe this same process. See also RETAINED PROFIT.

capitalization issue

or

scrip issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS without any further payment being required. Capitalization issues are usually made where a company has ploughed back profits over several years, so accumulating substantial RESERVES, or has revalued its fixed assets and accumulated capital reserves. If the company wishes to capitalize the reserves, it can do so by creating extra shares to match the reserves and issue them as BONUS SHARES to existing shareholders in proportion to their existing shareholdings. See also RETAINED PROFIT.
References in periodicals archive ?
95-19 indicates that an interest capitalization issue is under consideration if the taxpayer has received written notification, including an information document request, identifying a method or submethod as under consideration.
11p per share adjusted for the capitalization issue in July 1994).
Vodafone AirTouch Plc (the "Company") (NYSE: VOD), Pursuant to a resolution of the shareholders of the Company at its Annual General Meeting held on 21 July 1999, the Company's board of directors approved a resolution on 14 September 1999 to implement a 4 for 1 capitalization issue payable in the form of four shares for every one share held at 9.
Mersereau also advises clients on capitalization issues relating to the tangible property "repair regulations.
The IRS continues to provide guidance for certain industries through its Industry Issue Resolution program, addressing capitalization issues and challenges unique to certain industries.
WAM is best described as a relative value manager emphasizing mid-to-large capitalization issues with both value and GARP (Growth At a Reasonable Price) overlays.
In simplistic terms and ignoring the capitalization issues, a property that a building owner might realistically value at $1 million would be assessed at $450,000 by the city using its targeted 45 percent ratio, but assessed at $350,000 if using a generic 35 percent SBEA figure.
The rating downgrades reflect the unresolved capitalization issues that have persisted for Asian Re due to continued reserve development stemming from the Thailand flooding losses and delay in execution of its capital infusion plan in a timely manner.
There are also risks associated with small and mid-capitalization issues such as market illiquidity and greater market volatility than larger capitalization issues.
It is particularly timely, given ongoing developments on capitalization issues.
Olson's work at the Treasury Department on tax shelters, capitalization issues, and simplification, as well as her continuing outreach to TEI and other tax organizations.