TeachMeFinance.com - explain Bonus
Bonus --A premium or gratuity; something given free in
addition to what is usual or stipulated.
It is not an infrequent practise on the organization of a stock
company to give to purchasers of the preferred stock as a
bonus that is, without charge, a certain percentage (perhaps
an equal amount) of common stock. Sometimes when a company
issues bonds it gives to purchasers a bonus in stock.
In Great Britain when an extra dividend or dividend in excess
of the regular dividend is declared it is called a bonus.
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