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What is Stock Dividend Bonus Share?

The shares that are issued by a company when they experience aprofit in their business,to their shareholders at no extra cost is known as stock dividend bonus share. It could also be stated as additional shares.

What is stock split?

If stated in a simplified way, when stock dividend bonus share is divided into two parts it is known as astock split.

Why are both a necessity?                                                                                               

A positive response in the market is because of bonus shares. The issue of bonus shares means unaltered proportional stockholder ownership. As abonus is important for a company, distribution of shares via splitting is also important for the smooth flow of business.

We have provided a glimpse of both of their necessities here. With our stock dividend bonus share and stock splits shares homework help service; you can get detailed information in this aspect.

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  • Difference between stock splits shares and stock dividend bonus shares
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  • Tax implications regarding both cases

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