Stock Splits v. Bonus Shares

Stock Splits v. Bonus Shares:

• Stock split is dividing the share into pieces while bonus is a free additional share to the shareholder.
• Stock split benefits both the existing and potential investors while bonus shares benefits only the existing shareholders.
• Tax Treatment: In case of stock split, the price of stock gets halved so the cost base of the gain is also halved while in bonus share, the new shares are valued at price of zero, on calculating capital gains this will affect the tax treatment.

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