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Tool 24

Stock market calculators · Additional shares and theoretical price

Bonus Share Calculator

Created by Arunangshu DasReviewed

Calculate theoretical bonus and total shares, exact fractional entitlement and ex-bonus reference price.

Use one security, one currency and an additional-for-held ratio.

Pre-bonus position and additional-for-held ratio

Enter one security in consistent share units. The ratio adds shares to the holding, with no modeled subscription payment.

Formatting only. Enter major currency units, including pounds for GBP.

Enter the shares you hold, including any fractional shares.

Use a price before the bonus adjustment. A purchase price, face value or bonus-adjusted quote describes a different input.

For one additional share per three held, enter 1 here.

For one additional share per three held, enter 3 here.

Theoretical position before settlement

Enter your position and bonus ratio, or load the worked example.

The whole and fractional components describe the exact theoretical entitlement. Actual shares and any cash depend on settlement terms. Market prices can move after the bonus issue.

The decimal share and price displays use up to 12 significant figures. Position value uses the unrounded calculation, so multiplying rounded display values can give a different amount.

Understand bonus ratios and fractional entitlements

Follow verified bonus examples and learn why the theoretical share count can differ from the actual account credit.

Read the complete Bonus Share guide

Formula and methodology

Bonus shares = Q × A / B
Total shares = Q × (A + B) / B
Ex-bonus price = P × B / (A + B).

Compute bonus shares as Q × A/B. Add them to Q to find total shares. Multiply P by B/(A+B) to obtain the theoretical ex-bonus reference price. The unrounded total shares times that price equal the opening product Q × P. Use the exact whole and reduced fractional components to reconcile the additional entitlement.

Definitions

Q is the eligible opening holding and P is its pre-bonus reference price per share. A-for-B means A additional shares for every B held. The opening holding remains part of the total. A 1-for-3 bonus adds one share to every three and leaves four in total.

Verified worked examples

With 100 eligible shares at 12 and one bonus share for every three held, the entitlement is 100/3 shares, or 33 whole shares plus 1/3. The total is 400/3 shares and the theoretical price is 9. Both modeled position values are 1,200 before settlement or market changes. A 1-for-1 bonus on 7 shares at 10 gives 7 additional shares, 14 total and a reference price of 5.

Interpretation

The extra shares do not imply a gain in modeled wealth. The proportional share increase is offset by a lower theoretical price per share. Actual prices and credited shares depend on market movement and issuer or broker settlement. The whole component is only a mathematical decomposition.

Inputs and interpretation

Use the issuer notice to identify the number of additional shares and the number held. Enter the eligible holding you want to model and a pre-bonus reference quote in one major currency. Calculate and check the additional shares, total, exact remainder and modeled value.

Assumptions and limitations

One proportional issue on a consistent share basis with no subscription cash. This model assumes a value-preserving reference adjustment before settlement. It does not infer an event date or apply the adjustment to a quote that already reflects the same bonus.

Supported domain and common mistakes

Opening shares and reference price allow explicit zero through 1e12, with up to 12 fractional places and 48 trimmed characters. Each ratio term is a positive integer through 1,000,000. Exact ratios preserve the reduced fraction before 80-significant-digit decimal conversion. Shares and price display up to 12 significant figures.

Do not read the additional-for-held bonus ratio as a new-for-old split ratio. Do not use a cash dividend percentage, purchase price or face value as the reference quote. Keep pounds and pence consistent, and use the exact decomposition when a displayed decimal rounds near a whole share.

Frequently asked questions

What does a 1-for-3 bonus mean?
It means one additional share for every three eligible shares held. Three opening shares become four theoretical shares.
How do I calculate total shares after a bonus issue?
Multiply opening shares by the additional-for-held ratio, then add the opening shares. For 100 shares and a 1-for-3 bonus, the total is exactly 400/3 shares.
Why does the reference price fall in the model?
The model spreads the same opening value across more shares. The resulting reference price is a calculation rather than a prediction of the actual trade price.
Can I get a fraction of a bonus share?
The theoretical calculation can produce a fraction. The calculator gives its exact reduced form, but the issuer and broker terms determine what is credited.
Can I enter zero opening shares or price?
Yes. Enter zero explicitly. Zero shares gives zero additional and total shares. Zero price gives zero modeled value. Both ratio terms must be positive.
Is a bonus issue the same as a paid rights issue?
This model adds proportionate shares without subscription cash. A paid rights offer involves a subscription price and take-up choice.
Does choosing another market convert my price?
No. It changes presentation only. Enter the quote in major currency units, such as pounds for GBP.

Sources and educational scope

Educational theoretical model. It does not determine eligibility, delivered shares, record or ex-dates, broker rounding, cash-in-lieu, tax or cost basis, fees, FX or observed trading prices. It does not provide personalized investment advice.

Reviewed . AI-assisted content under operator editorial responsibility; no independent expert financial review is claimed.

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