free issue

Meanings

1. 1nouncountablebusinessfinance

   New shares given to existing shareholders without payment, in proportion to what they already own.

   Grammar: Countable: a free issue, two free issues. Often written as 'free issue of shares'.

   Patterns

   • a free issue of shares
   • make a free issue
   • receive a free issue

   The board announced a free issue of one new share for every ten held.

   A free issue does not bring new money into the company; it simply gives shareholders more shares.

2. 2nouncountablebusiness

   A product or item given to someone at no cost, often as a sample or gift.

   Grammar: Countable and used in general English: a free issue of samples.

   Patterns

   • a free issue of something
   • get a free issue

   Customers received a free issue of the new phone case with every purchase.

   The magazine offered a free issue to anyone who signed up online.

Word forms

Common combinations

a free issue of shares

The company made a free issue of shares to reward loyal investors.

bonus issue

A bonus issue is another name for a free issue of shares.

free issue of samples

The free issue of samples attracted many new customers.

Synonyms and how they differ

bonus issue

The usual British term for shares given free to shareholders; 'free issue' is a broader, more literal phrase.

scrip issue

A technical term for the same idea, used mainly in older British financial writing.

giveaway

Informal and used for products, not shares; it stresses that the item is a gift.

Opposites

Word family

issue verb

To officially give out something, such as shares or tickets.

issuer noun

A company or organization that gives out shares or other financial products.

Commonly confused: free issue or rights issue?

Practice

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Write a sentence using “free issue”, then check it and compare it with the examples above.

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