Free of charge, handing out shares without receiving money.
Even if the number of shares increases, the equity does not increase. Bonus Issue is not necessarily a good fact. We need to make a judgment according to the situation
It means that there is a lot of surplus (remaining money) inside the company in order for the company to make a bonus issue. Simply put, the company has a lot of money, so you issue stocks with that money and distribute them to shareholders.
By giving shareholders the benefit of increasing the number of shares held, they can enjoy the effect of increasing popularity in the stock market and increasing stock prices. That's how strong the company's financial structure is, it can be taken as a good sign.
But Some small businesses abuse bonus issume for speculative purposes. It is a method of buying stocks in advance before announcing a bonus issume, and selling stocks after announcing a bonus issue. Then the stock will go down, right?