Definition
A bonus issue changes the number of shares, not the underlying business value by itself. Investors should review the ratio and record date.
Worked example
In a 10% bonus issue, an investor holding 100 shares receives 10 additional shares.
B
Glossary · PSX term
Bonus shares.
Bonus shares are additional shares issued to existing shareholders without a cash payment. They increase the number of shares held, while the share price usually adjusts to reflect the larger share count.
More glossary terms
Browse all 199 terms →Book closure
Book closure is the period when a company closes its shareholder register to determine who is eligible for a dividend, bonus, right share, or meeting vote.
Book value
Book value is the accounting value of a company's net assets. PSX investors often compare it with market price, especially for banks and asset-heavy businesses, but it does not capture every business strength or risk.
Brokerage fee
A brokerage fee is the cost charged by a broker when buying or selling shares. It reduces net returns and should be included when comparing portfolio performance.
Beta
Beta estimates how sensitive a stock has been to market moves. It is a historical risk measure, not a forecast of future performance.
Bull market
A bull market is a sustained period of rising stock prices and positive investor sentiment.
Bear market
A bear market is a sustained period of falling prices, usually a drop of 20% or more from a high.
Blue-chip stock
A blue-chip is a large, established, financially sound company with a track record of stable performance.
Book-building
Book-building is a process where institutional investors bid to set the IPO price before the public offer.
Broker sub-account
A sub-account is a client account held within a broker's main CDC account at the depository.