What is the difference between a bonus issue and a stock split?

Both give the holder more shares without payment. In a split (SPLF) the nominal value per share is reduced and the existing shares are replaced or multiplied. In a bonus issue the nominal value stays the same and new shares are created out of reserves.

Is a bonus issue taxable?

In many countries it is not taxed when received, because the holder’s value does not change, but the rules differ by country and by whether the issue is treated as a dividend. Check the local tax treatment before booking it.

Why is the bonus share quantity lower than holding times ratio?

Fractions. The entitlement is usually rounded down to whole shares, and the fraction is either dropped or paid in cash. Check the disposition of fractions in the announcement.

Corporate action events

BONU: Bonus Issue/Capitalisation Issue

Written and maintained by ZagTrader. Last reviewed 21 October 2026. How this page is sourced and checked

BONU is a bonus or capitalisation issue: the company gives existing shareholders extra shares free of charge, in proportion to what they hold, usually by turning reserves into share capital. The holder keeps the existing shares and receives the new ones.

Code: BONU
Usually announced as: MAND (CHOS for bonus rights)

What BONU means

In a bonus issue the company moves an amount from its reserves into share capital and issues new shares to cover it. Nothing is paid by the holder and no cash leaves the company. A 1 for 10 bonus gives one new share for every ten held, so a holder of 1,000 shares ends up with 1,100.

The company’s value does not change, so the share price falls in proportion on the ex date. The holder’s total value is the same, spread over more shares. Entitlement is set by the position on the record date. When the ratio does not divide a holding evenly, fractions are rounded down and either dropped, sold for cash in lieu, or rounded up, depending on the issuer’s terms.

Some markets distribute the bonus as tradable bonus rights first. The SMPG grid then has two set-ups: a single event with intermediate securities, or a rights distribution (RHDI with :22F::RHDI//BONU) followed by a BONU event with options.

When you see it

Normally an MT564 with :22F::CAEV//BONU and :22F::CAMV//MAND, one option SECU, the ratio as additional for existing securities (:92D::ADEX, for example 1,/10,), the ex date (XDTE), record date (RDTE) and the payment date of the new shares (PAYD). Where bonus rights are involved, the SMPG grid uses CHOS with options such as SECU, LAPS, BUYA and SLLE.
BONU vs SPLF: a split changes the nominal value and replaces or multiplies the existing shares, while a bonus adds new shares on top and keeps the nominal value. BONU vs DVSE: a stock dividend is paid as a dividend out of profits and can be taxed as income, while a bonus issue is a capitalisation of reserves; the market and the tax law decide which code the issuer uses. Where holders choose between shares and cash, the event is DVOP.

What to do next

No instruction for a mandatory bonus issue. Check the ratio against the record date position and expect the new shares on the payment date.
When the MT566 arrives, reconcile the credited quantity (:36B::PSTA) with the holding times the ratio, rounded as the issuer stated, and any cash in lieu of fractions. Update average cost: the original cost is now spread over more shares.
Watch for pending trades around the ex date: a buyer who traded before the ex date but settles after the record date is owed the new shares through a market claim.

Where it appears in MT and ISO 20022

MT (ISO 15022)

MT564 sequence A (GENL): :22F::CAEV//BONU, with :22F::CAMV//MAND (or CHOS for bonus rights).
MT566 and MT568 sequence A: :22F::CAEV//BONU; MT565 and MT567 only when there is a choice.

MX (ISO 20022)

seev.031 CorpActnGnlInf/EvtTp/Cd = BONU, with CorpActnGnlInf/MndtryVlntryEvtTp/Cd = MAND or CHOS.
The same event type element is used in seev.036 (movement confirmation) and, for the elective set-up, seev.033.

Questions

What is the difference between a bonus issue and a stock split?: Both give the holder more shares without payment. In a split (SPLF) the nominal value per share is reduced and the existing shares are replaced or multiplied. In a bonus issue the nominal value stays the same and new shares are created out of reserves.
Is a bonus issue taxable?: In many countries it is not taxed when received, because the holder’s value does not change, but the rules differ by country and by whether the issue is treated as a dividend. Check the local tax treatment before booking it.
Why is the bonus share quantity lower than holding times ratio?: Fractions. The entitlement is usually rounded down to whole shares, and the fraction is either dropped or paid in cash. Check the disposition of fractions in the announcement.