USA HISTORY

Detailed explanation-1: -2:1 bonus means, two shares for one share. Additional information-when shares are given bonus the face value remains same but share price is reduced accordingly.

Detailed explanation-2: -Bonus shares are issued in a particular ratio (eg 1:1, 1:2 etc). This means that the company will issue one bonus share for every one share held by the existing shareholders and one bonus share for every two shares held by the existing shareholders, respectively.

Detailed explanation-3: -If bonus shares are issued in the proportion of 1:3, it means that for every 3 shares held by a shareholder, they will get 1 additional share.

Detailed explanation-4: -The board of the small-cap textile company has announced bonus shares in 1:10 ratio that means one bonus share will be awarded for 10 shares held by the shareholders.

Detailed explanation-5: -For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.