It’s like a regular market where buyers meet sellers. But unlike vegetable market, there’s no physical product exchange takes place.
Manoj Kumar, , Basics of Stock Market, Certificate, Dividend, Investment and trading, IPO, NES/BSE, SEBI, SENSEX & NIFTY, share
Hi,
Your Question 1 :: What is the difference between Dividend, Bonus and Split value?
Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns.
When a company takes the decision to increase the number of its outstanding shares there takes place what is commonly known as a stock split.
In both case the trading price of the stock will reduce and number of stocks you own will increase. As a result your holding value will remain unchanged. But in case of bonus, your stock’s Face value will remain unchanged and thus your EPS will remain unchanged which reduces in the case of Stock split.
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.
Naresh,
You mentioned that in case of Bonus, trading price of the stock will decrease. Would you please elaborate this ? I’m confused how it would reduce the price.