Stock Market FAQs: Stock Split vs Bonus Issue - know the differences
At the outset, both – Stock Split and Bonus Issue – appear as one and the same from an investor point of view as he/she will be receiving additional shares without paying any extra amount. However, there are lot of differences between the two concepts an investor must know.
While the face value of a share is reduced in proportion of split ratio during Stock Split, it remains the same during Bonus Shares. Image Source: Reuters