Term · Capital Measures & Financing
Bonus shares
In briefBonus shares are free shares issued to existing shareholders out of company reserves; the notional total value initially stays the same. For small caps they can change the optical liquidity and share count without creating operational value.
Definition
Bonus shares are free shares allotted to existing shareholders out of company reserves.
How it is calculated
Formula. Bonus shares = allotment ratio x existing shares; the total economic value initially remains unchanged on paper.
Why it matters for small caps
In the small-cap segment, bonus shares can change the optical liquidity and share count without creating operational value.
Common misreadings
- Bonus shares are often interpreted as a genuine distribution, even though they usually represent a reclassification within equity.
In the process
Frequently asked
What are bonus shares?
They are shares allotted free of charge out of existing company reserves. They are credited to existing shareholders in a defined ratio.
What effect do bonus shares have?
The share count rises while the total economic value remains the same on paper. The price per share adjusts accordingly.
Are bonus shares a genuine distribution?
No, they usually represent a reclassification within equity. No new money flows to the shareholders in the process.
Related terms
Sources
Primary
Bundesministerium der Justiz – Aktiengesetz (AktG)
https://www.gesetze-im-internet.de/aktg/
https://www.gesetze-im-internet.de/aktg/
Methodology
EUR-Lex – EU-Prospektverordnung, Verordnung (EU) 2017/1129
https://eur-lex.europa.eu/eli/reg/2017/1129/oj
https://eur-lex.europa.eu/eli/reg/2017/1129/oj
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.