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sayed123 December 26th, 2013 03:40 PM

Bonus share
 
what is Bonus share? discuss bonus share in detail?

taskinuddin December 26th, 2013 03:54 PM

Re: Bonus share
 
Many a times the company may not pay out its accumulated earnings in the form of dividends to the shareholders, rather it may decide to offer them free shares based on a their existing number of shares. Basically when a company offers bonus shares, it provides each shareholder with a certain proportion of new shares based on their existing number of shares. However the total valuation of the company and the ratio of shares held by various shareholders remain same.
Companies often benefit by doing so especially when their stock prices are very high.
In such cases by increasing the number of shares the company ends up decreasing the price per share.
For example if a company declares a bonus share ratio of 4:1, that means it will offer one share per 4 shares held by any shareholder.

rosemarry2 April 21st, 2016 03:18 PM

Re: Bonus share
 
1 Attachment(s)
Quote:

Originally Posted by sayed123 (Post 490309)
what is Bonus share? discuss bonus share in detail?

Hello dear,

Here I am uploading Study on Bonus Shares, so please download and check it.


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