Buying of shares at the face value of an IPO issue or buying and selling at current share price in the stock market for a long or short time through Demat account and making a profit out of it.
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@divghu Good Start.! All the Best. I try to answer your questions.
Bonus is the additional shares issued by the company to their existing shareholders. The reserves and the surplus amount retained by the company through profits are considered as additional capital. The face value remains the same here. The market value of the share is reduced.
Split is where the existing number of shares are split into fractions by reducing the face value. It may improve the liquidity of the shares. The market value of the share is reduced.
So Bonus and Split are different in terms of face value.
Thank you so much for your explanation about bonus and split. It’s very clear now…