Bonus share vs. Stock split

The names stock split and bonus issue are quite deceptive. Listening to "stock split" seems as if the number of shares might increase and when one talks about "bonus issues", it seems that the company is giving some extra shares, that too for free. But is it really true?

Stock splits and bonus issues are two ways that companies can make their shares more affordable and accessible to investors. This can lead to an increase in demand for the shares, however, it is important to remember that stock splits and bonus issues do not change the underlying fundamentals of the company.

In this video, we discuss these two corporate actions in detail and also talk about how they are different from each other in Hindi.

Refer to the below links to learn more:

1. Face value, book value, market value -    • Difference between face value, market...  
2. Impact of bonus and split on F&O do check out the video -    • Impact of corporate action on derivat...  
3. Learn more about the stock market here: https://zerodha.com/varsity/

Time Stamps


00:00 - Introduction
00:45 - What is Stock Split?
04:05 - Why companies do Stock Split?
04:35 - What are Bonus Shares?
07:45 - Why companies do Bonus Issue?
08:20 - Difference between Stock Split and Bonus Issue
08:50 - Impact on Balance Sheet
11:38 - Conclusion


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