{"id":344265,"date":"2026-11-12T09:56:57","date_gmt":"2026-11-12T04:26:57","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=344265"},"modified":"2026-11-12T09:56:57","modified_gmt":"2026-11-12T04:26:57","slug":"bonus-shares-vs-stock-split-difference","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/bonus-shares-vs-stock-split-difference\/","title":{"rendered":"Bonus Shares vs Stock Split: How They Differ, What Happens to the Price and How Each Is Taxed"},"content":{"rendered":"

A bonus issue gives free shares from reserves. A stock split cuts face value and multiplies shares. Both lower the price in proportion, and neither changes the value of your holding on its own.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

Bonus shares vs stock split is a question of source. A bonus issue gives you extra shares free of cost, paid for out of the company’s reserves, while a stock split divides each share into several shares of lower face value without touching reserves. In both cases the number of shares rises and the price adjusts down in proportion, so the total value of your holding stays the same at the moment of the change.<\/p>\n<\/p><\/div>\n

Bonus shares vs stock split is one of the most common points of confusion when a company announces a corporate action and the share price suddenly looks cut in half. The price drop feels alarming until you see that the number of shares has gone up by the same proportion.<\/p>\n

This guide explains how each action works, what changes on the ex-date, why neither creates real wealth, and how the cost and holding period are treated for tax.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

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