Bonus Issue vs Stock Split

Comparison Between Bonus Issue and Stock Split

Bonus Issue	Stock Split
The Par value of the stock remains constant	The par value of the stock is reduced
A part of the reserve is capitalised	There is no capitalization of reserves
The shareholders proportional ownership remains unchanged	The shareholders proportional ownership remains unchanged
The book value per share, the earnings per share and the market price per share decline	The book value per share, the earnings per share and the market price per share decline
The market price per share is brought within a more popular trading range	The market price per share is brought within a more popular trading range

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On Management

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