Free share (See Chapter 28 of the Vernimmen) Free shares are awarded when there is a capital increase by incorporation of reserves. Each shareholder receives free shares in proportion to his/her current stake in the company. Such transaction results in a mechanical downward adjustment of the share price, so that the product of the number of shares before the operation by unit value of share is equal to the new number of shares (thus increased) by new unit value of share. This operation is often carried out to increase the liquidity of the share by decreasing its unit value. Free share (See Chapter 28 of the Vernimmen) Free shares are awarded when there is a capital increase by incorporation of reserves. Each shareholder receives free shares in proportion to his/her current stake in the company. Such transaction results in a mechanical downward adjustment of the share price, so that the product of the number of shares before the operation by unit value of share is equal to the new number of shares (thus increased) by new unit value of share. This operation is often carried out to increase the liquidity of the share by decreasing its unit value. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Free share" :

FCFF FFO FIFO, First in, first out FRA Face value Facility fee Factor Factoring Fairness opinion Fallen angels Fama-French model Family-owned company Finance lease Financial analysis Financial analysis techniques Financial analyst Financial assets Financial breakeven Financial buyer Financial communication Financial cost Financial currency risk Financial distress Financial distress cost Financial expense Financial income Financial interest rate risk

Financial investor Financial leverage Financial leverage - dynamic Financial loan Financial resources Financial risk Financial risk management Financial security Financial structure Financial sweetener Financial synergy Financial system Financing cycle Firm underwriting Firm value First in, first out First mover advantage Fisher formula Fixed assets Fixed costs Fixed income securities Fixed-price offering Fixed-rate debt security Floating-rate debt security Floor Floor plan loan Flow-back

Foreign bond Foreign currency advances Foreign currency hedging Foreign exchange gains and losses Foreign exchange risk Forward currency transaction Forward exchange rate Forward rate agreement, FRA Forward transaction Forward-forward rate Free cash flow Free cash flow Free cash flow to the firm, FCFF Free float Free float factor Free rider Free share Friendly offer Full commitment Full consolidation Fully-diluted EPS Fundamental analysis Fundamental valuation method Funds from operation ( FFO) Fungibility Future