Bonus is an extra-dividend which is paid by the company to its employees and stock-holders out of the profits. When a company goes into profit, it distributes some percentage of its profits among its regular employees. This is other than their regular salaries. Likewise, a company also distributes certain ratio of its profits among its share-holders in proportion to the stocks they hold. However, some companies, instead of giving cash dividend, offer additional shares to its stock-holders. The shares so offered, are called Bonus Shares or Right Shares.
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