Bonus shares are additional shares which are gifted to its shareholders. Simple! If you are an existing shareholder of any company (as per the record date) then it might happen that the company may gift you some extra shares. You get these additional shares without paying anything, hence are known as… Continue reading
Tax on share trading can be reduced considerably by following certain Tax saving methods – Trading as business income: – If you consider your trading gain as “business income” then you have to pay tax as per your Tax slab. The benefit is you can deduct your trading related expenses… Continue reading
Income tax on share trading depends on whether you are showing it as “Capital gain” or “Business Income”. Capital gain: If you are trading in stock market as an investor (mostly involved in delivery based trading), the gains from trading can be classified as: Long term capital gain: – If equity… Continue reading
GST to Replace following 16 taxes levied by Centre (As per Lok Sabha debate.) 👉 Central Excise Duty. 👉 Duties of Excise ( Medicinal and Toilet Preparations). 👉 Additional Duties of Excise (Goods of Special Importance). 👉 Additional Duties of Excise (Textiles and Textile Products). 👉 Additional Duties of Customs… Continue reading
A bonus is a free additional share while a stock split is the same share split into two. Some companies accumulate its earnings in reserve funds instead of paying it to shareholders in the form of a dividend. This accumulated reserve fund is then allotted to shareholders as bonus shares… Continue reading
It is as simple as cutting an eight-inch pizza into eight slices from four slices. When a stock split is declared by the company the number of shares increases but the investment value remains the same as the number of pieces in pizza is increased but the size of pizza… Continue reading
A bonus issue is a stock dividend, declared by a company to reward the shareholders. The bonus shares are issued out of the reserves of the company. In simple terms, these are free shares that the stockholders receive against the shares that they currently hold. These allocations typically come in… Continue reading
The principal purpose is to enlarge its share capital. They have three options to do the same: New issue of shares to present shareholders. Making an open offer. Bulk allotment of shares to a group of individuals or companies. The rationale behind preferential allotment is to provide a way to… Continue reading
Preferential allotment is the process by which allotment of shares is done on a preferential basis to a select group of investors.Now let us understand about it in details. A company plans to raise funds for its future expansion activities and reducing debt. But issuing securities to the public at… Continue reading
Management analysis is the utmost important factor before investing in stocks because a great management can turn around a poor business and poor management can ruin good business. Now the big question comes, “How to evaluate the management ?” Many analysts will coin the idea of management visit, discussion with founders,… Continue reading