Capitalisation \ The injection of capital into a company.The process by which a company converts its cash reserves into new shares and issues them to existing shareholders on a pro rata basis. Also known as a Scrip Issue, or Bonus Issue. Note that since the effect of a capitalisation issue is to increase the number of shares in the company, the market price of the shares will typically fall to reflect the dilution.
Capitalisation / the injection of capital into a company.the process by which a company converts its cash reserves into new shares and issues them to existing shareholders on a pro rata basis. also known as a scrip issue, or bonus issue. note that since the effect of a capitalisation issue is to increase the number of shares in the company, the market price of the shares will typically fall to reflect the dilution.