Bonus shares?

Question

Could any one explain to be about bonus shares with an figure example:

If i hold a 10 shares of 100 currency values and bonus is declared 1:2

Shall my shares n demant account tally to 20 shares??If yes what shall be the price of additional 10 shares.

To be more precise how is the shareholder benefited.

please reply with an example.

Thank you in advance.

Answer 1

If you own 100 shares and a 10 percent share is declared you get 10 more shares. The stock value will fall 10 percent so you won't be ahead any.