A Bonus Share Issue (sometimes referred to as ”Scrip Issue”) is an issue of free shares, paid for by the issuing company from their capital reserves. The purpose is to increase the liquidity of the company’s shares in the market, by increasing the number of shares in circulation (which reduces the share price). Bonus shares are issued according to a ratio: n shares for each share you currently hold.
To record an issue of bonus shares, click CORPORATE ACTIONS on the ASSETS menu, then BONUS SHARE.
Enter the Record Date by selecting from the popup calendar.
Select the Asset from the assets list.
Mclowd displays the Assets Shares Data (purchase date, CGT date, volume and price per unit.)
NOTE: The below screen is for example purposes only. It is not intended to suggest that Woolworths issued bonus shares on that date.
Enter the Posting Date by selection from the popup calendar.
Enter the Ratio (number of bonus shares issued) to number of shares.
NOTE: Typically this will be n.nn shares per share, in which case the number of Existing shares is 1.
Click VIEW REVISED ASSET DATA.
Mclowd now displays the Asset record showing the adjusted volume of shares held and the new price per unit. You can see that, in the example, the number of shares held increased from 350 to 721, and the price per share reduced from $22.60 to $10.97.
When you are satisfied that the data entered is correct, click SAVE.