Tag Archives: Shares

Bonus share is a way to increase the equity base of any company. Investing in any stock with a sole intention to benefit from bonus issue is a wrong concept as price correction occurs later. By no means, it should be considered as a parameter to judge the future prospect… Continue reading →

It increases your holding, however, the total value remains the same- Suppose, you are holding  10 quantities of ABC stock. Now, after 1:1 bonus issue, you will get additional 10 shares, so your number of holding in ABC stock will increase to 20. Similarly, if 2:1 bonus is issued, then… Continue reading →

Increases the number of outstanding shares and also the retail participation- Bonus issue increases the total outstanding shares of a company. Suppose initially the total outstanding share is 10 lakhs. After the issue of 1:1 bonus, the number of shares increases up to 20 Lakhs. However, the total market value… Continue reading →

Well, there may be various reasons for this. Let’s check them one by one:- 1. To reward their investors- The Company pays gratitude  to its investors in the  form of giving a bonus share. Also the morale of the shareholder gets boosted and the company gains the confidence of the investors…. Continue reading →

After the announcement of a bonus issue, a record date is fixed for the issue. It is the date on which the bonus share is issued and to be eligible for the bonus, shareholders should have their stakes on that particular date. Investors purchasing stakes after that are not eligible for… Continue reading →

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 →