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Bonus issue

Bonus issue

A bonus issue raises share capital using the company's own funds, without new capital being added.

What is a bonus issue?

A bonus issue is a share issue in which share capital is increased by transferring the company's own funds, such as unrestricted equity, to share capital. Unlike a new share issue, no new money is added from outside.

 

What happens in a bonus issue?

The company can either issue new shares to existing shareholders or raise the shares' quota value. Ownership proportions are unaffected — everyone owns the same share as before, but the share capital is larger. The bonus issue is recorded as a share ledger event.

Record a bonus issue
Henrik Kristensen, NVR
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Related terms

Bonus share

A bonus share is a new share issued in a bonus issue, without the shareholders paying anything for it.

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.

Bonus share right

A bonus share right is an existing shareholder's right to receive new shares in a bonus issue in the company.

Share issue

A share issue is when a limited company issues new securities, usually shares, to raise capital.