India, Aug. 30 -- Bonus shares are additional shares given by a company to its existing shareholders free of cost. These shares are issued from the company's accumulated reserves, so investors do not have to make any additional payment. While the number of shares held by an investor increases, the overall value of the investment generally remains unchanged. Bonus issues are often considered a sign of the company's strong financial position and confidence in its future growth.

Stock splits occur when a company divides its existing shares into a larger number of shares by reducing their face value. Although the number of shares increases and the price per share decreases, the total value of the investor's holding remains broadly unchanged...