(D) Bonus share — Shares issued by a company to existing shareholders free of charge, in proportion to the number of shares already held, are called Bonus shares.
The key phrase "without charge, proportionate to shares owned" defines a bonus issue (bonus shares). Rights issue involves shareholders buying additional shares at a discount, not for free. Equity and preference shares are types of shares, not corporate actions matching this description. Examiners look for the exact term "Bonus share."