India, May 9 -- Bonus shares are extra shares given free of cost to existing shareholders, usually from a company's reserves. They are issued as a reward for investor trust and indicate strong financial health. While the total investment value remains the same, bonus issues increase the number of shares held, improving liquidity in the market.

A stock split works by dividing existing shares into smaller units, reducing their face value and increasing the total number of shares. This does not change the overall value of an investor's holding, but makes the shares more affordable and easier to trade. Recently, many companies have announced such actions, reflecting financial strength and supporting greater investor participation. Here are t...