Bonus Issue

(redirected from Capitalization Issues)
Also found in: Dictionary.

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.
Three years ago, the IRS's Large and Mid Size Business Division (LMSB) was spending 25 percent of its time on 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.
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).