What is a record date and ex-date?

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 the bonus shares. After the record date, comes ex-date. The price adjustment happens during ex-date. Those who invested during this phase are not entitled to the bonus shares.

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