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
Indian economy is in very bad shape now. Government is totally failed to revive our economy. GDP growth rate is hovering around 5%-6% which is much lower than we saw during 2004-2008 period. Major concern is Rupee depreciation and very high current account deficit. Rupee is at its life time… Continue reading
First of all decide how much you want to invest in stocks for the next 2-3 months. Divide that entire amount into several smaller parts. Invest each small chunk at every market dips in your pre-selected stocks.Otherwise invest each small chunk whenever your pre-selected stock falls by 3%-5% . As,this… Continue reading
First of all follow some To-Do list- Don’t invest when Sensex is above 20,000 level. (Applicable for the next 1-2 months only) Be greedy to invest in stocks when Sensex falls below 19,000 level. (Applicable for the next 1-2 months only) Let me tell you that most TV-analyst will exactly… Continue reading
Some investors take pride having 60+ stocks in their portfolio. If you are one of them then follow associated problems to hold such large number of stocks- Very difficult to track properly :- Whether you are following any expert’s advice or not,it is very essential to track all of your… Continue reading
Diversification does not necessarily mean having a huge number of stocks in your portfolio. Investors often construct stock portfolio with 40-50 stocks (or more than that) to diversify their portfolio. If you are one of them then you are committing a great mistake at the very beginning. A portfolio of… Continue reading