A major question that comes to the mind of many new investors are “what is bonus share?” Let us discuss the topic here and after reading this article you will be able to know bonus share meaning with example. The name bonus has a notion that something is being given to us extra. It denotes, we are getting something extra without paying anything extra. But in the stock market, a company issues a bonus as a gift to investors. They issue extra shares to investors based on their existing shares.