| Bonus Shares | Right Shares |
| 1. Bonus shares are issued free of cost to the existing shareholders in proportion to their holdings. | 1. These shares are issued at a price. |
| 2. These shares are fully paid. | 2. These shares may be partly paid also. |
| 3. Bonus issues are generally issued by profit-making companies by capitalizing the free reserves. | 3. These are issued at a price. The price offered are usually discounted from the trading price, that is the benefit to existing shareholders. |
| 4. A shareholder cannot renounce the offer. | 4. A shareholder may renounce all or a part of the offer. |
