You may be aware that Reliance Industries Ltd in the meeting held on october 7th 2009, they announced they are giving a Bonus of 1:1 and also a dividend of of Rs. 13.
Now what does all this mean.
Bonus shares are gifts from the company, where it issues free additional shares to its shareholders. So, if you own 10 shares of Reliance Industries Ltd, you get another 10 shares at no extra cost, taking your aggregate to 20.
Dividend is something where company pays out small amount to the shareholders. So again if you own 10 shares of Reliance Industries Ltd you would get Rs 130 as a dividend.
Its more of a confidence boosters of long term shareholders of Reliance Industries Limited.