What is difference between Stock Split and Bonus Issue?

Below is the detailed view about the difference between Stock Split and Bonus Issue-

Basis	Stock Split	Bonus Issue
Meaning	Already owned shares split into smaller shares.	Free additional shares given to existing shareholders based on no. of shares owned
Reason	To improve Liquidity by breaking it into smaller size.	To distribute gains of accumulated earnings without paying cash to the shareholders.
Face Value (FV)	Reduces in proportion of split ratio.	Remains same.
Share Capital & Reserves	No impact.	Reserves reduced. Money moved to Share capital as new
Impact on future Dividend	Reduces in proportion to split ratio.	Remains same.
Eligibility	Shareholders (as on Record Date).	Shareholders (as on Record Date).
Example	Stock Split = 1:10	Bonus issue = 2:1
Example	Every already owned share is split into 10 new shares of new FV of 1/10 of original FV.	Shareholder gets 2 free shares for every 1 share already owned. So finally he has 1+2 =3 shares of same FV as before.

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What is difference between Stock Split and Bonus Issue?

What is difference between Stock Split and Bonus Issue?

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