The Rationale Behind Issuing Bonus Shares for Private Companies in the UK

The Rationale Behind Issuing Bonus Shares for Private Companies in the UK

The bonus issue of shares, also referred to as a scrip issue or capitalisation issue, represents additional shares that a company distributes to its existing shareholders free of charge. This strategy, often employed as a method of capital management, provides a multitude of advantages for private companies in the UK. Let us delve into the…