Definition
Free shares issued to existing shareholders from company reserves.
Understanding Bonus Shares
Bonus Shares is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: Free shares issued to existing shareholders from company reserves.
- Category: This term is commonly used in Stock Market Basics
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter bonus shares regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand bonus shares, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.