1 Comment
  1. Naresh 4 years ago

    Hi,
    Please find below the information for your reference-

    Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns.

    Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval. However, it is not obligatory for a company to pay a dividend. The dividend is usually a part of the profit that the company shares with its shareholders. If a company declares a dividend of Rs 2 per share, then the dividend amount is directly credited to our bank account and when the company declares bonus shares, the additional bonus shares are credited into our Demat account.

    Stock splits are mainly carried out with the intention of increasing liquidity. Once liquidity increases, more buyers and sellers trade in the stock. The split does not affect the value of your holdings even and it doesn’t affect the share’s intrinsic value. Only the advantage is When a share’s price runs up too high, smaller investors find it difficult to buy it. To make it attractive for such people, the company carries out the split, which brings down the share price. So, while some investors may be unwilling to pay Rs 1,000 for a certain stock, they may be more inclined to buy it at Rs 250, following a 4:1 split.

Leave a reply

©2024 | Rights Reserved | EQSIS | Terms and Conditions | Privacy Policy

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

Forgot your details?