Bonus issue
Market basicsFree additional shares issued to existing shareholders in proportion to their holding.
In plain terms
The same pie cut into more slices. Your wealth does not change by a single rupee.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Corporate action adjustment
Fundamental analysisAlso called: Adjusted per-share series
Restating historical per-share figures for bonus issues, splits, rights issues and similar events so that a per-share series remains continuous.
In plain terms
Bonuses and splits divide by a simple factor. A rights issue priced below the market contains an element of bonus, so it needs a computed factor rather than a divisor.