You often think that why company gives bonus shares and what is bonus shares?
Lets have cognition about it.
Bonus shares are issued to existing share holders.It does not affect companies working or performance.
Bonus shares will have following effects
Liquidity of shares will rise.
Book value of share will decrease & Earning Per Share will too.
Usually market will react positively on bonus issues.
Bonus share is sign of good fundamentals of company.
It tells company has outperformed in recent past.
At the time of bonus Issue announced company also announce record date for the issue.
Record Date mean share holders must hold the share at the record date specified by company.Bonus counts on the number share holding on that particular record date.
Thursday, August 28, 2008
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4 comments:
Hi Ketan,
This is very useful information provided by you.
Hi Ketan,
this is very useful information provided by you.thanx
hi Ketan,
This is Very useful Information Provided by you.thank you
hi
from this blog i learn wat is bonus share
if any new information regarding to finance articles than i like to read it thanx
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