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.
References in periodicals archive ?
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.
All 20 largest capitalization issues, except for Hanvit Bank rose.
Observation: Revenue procedure 98-17 signals that it is the IRS's intention to continue addressing capitalization issues one by one, taxpayer by taxpayer.
Stocks traded on ``bulletin boards'' and ``pink sheets'' tend to be highly speculative, extremely small capitalization issues that trade for as little as a few cents a share, usually for good reason.
Earlier in the financial crisis, lenders were slow to conclude loan sales, given bank capitalization issues and to accept losses based on heavily discounted purchase offers.
Three years ago, the IRS's Large and Mid Size Business Division (LMSB) was spending 25 percent of its time on capitalization issues .
There are also risks associated with small and mid-capitalization issues such as market illiquidity and greater market volatility than larger capitalization issues.
8) In public remarks, senior IRS and Treasury officials downplayed this perception, suggesting the increase in capitalization issues was due in part to the changing nature of the American economy and the emergence of an increasing array of intangibles that had never before been scrutinized under section 263.
The ANPRM's purpose is to reduce disputes on capitalization issues related to intangible assets.
and will support Theisen in a variety of activities including acquisition work, strategic direction, board relations, governance, and capitalization issues.
Olson said that additional guidance on capitalization issues would likely be issued, but the resources are not currently available for such a project.
In an advance notice of proposed rulemaking (REG-125638-01), the IRS announced its intention to issue regulations that will address capitalization issues involving the significant-future-benefit test (see "Proposed Guidance on Capitalization" below).