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Whipsaw Glossary

Currently viewing the definition of: Bonus Issue
 
 
 A bonus issue is an issue of new shares to existing shareholders in proportion to their existing shareholding. For example a 1:3 issue will give the shareholder one new share for every three shares currently held. The aim of a bonus issue is to have more shares in issue so the market price will reduce. This in turn makes the shares more tradable. 
 


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    • Variable Interest Rate
      An interest rate that moves in accordance with pre-determined criteria, typically the bank of England base rate.