Work out bonus share adjustment instantly with clear inputs, formula shown and shareable results.
A bonus issue capitalises reserves into new shares handed out free in a fixed ratio. Total value is unchanged, so the price adjusts down in proportion — the mechanics are those of a split, with a different accounting entry behind it.
Bonus adjustment
New shares = held × a/b; adjusted price = held × price / total shares
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
No cash leaves the company. It moves reserves into share capital and gives you more shares of the same total worth.
The original cost is spread over the enlarged holding, which lowers the cost per share for capital gains purposes.