Bonus Shares

Hi,

I am new to trading...

I need a clarification on bonus shares.

Suppose Jan 1,2006 is the record date for bonus shares and before the record date I hold 50 shares at the market value of 100 rupees.

Once the bonus shares are issued then I would be holding 100 shares with the current market value say 103.50....

From the above example does it mean to say that,

103.50*100 = 10350 (the value if I sell the 100 shares)

Please explain me in detail if I understood wrong with an example..

How did u get 103.5

If the bonus is 1:1 , the price will fall to around 50 (from 100), and therafter fluctuate depending on market mood / momentum / fundamentals etc

Read http://www.traderji.com/equities/7181-about-bonus-shares-stock-splits.html

bonus/split shares are a pain, I am a NRI ,my split share has been sent to a different account, from the one I usually trade. I have filled the relevant forms to move from one to the other account. I wanted to move out of the equity market, I am stuck with my shares. Icici have requested a copy of my photo Pan card, I have yet to recieve it, though I requested for one two months ago. Just hope the market does not lose a lot of its value before I get my card.

I feel u have a case against the broker ... they have no business to do that. Try complaining to sebi

Hi,
As i know for NRI's, bonus shares will go to yout non pins account & shares purchased from secondary market will go to your PINS account.

dont get confused!
on ex-date stock price will be balanced to equalize the value of the stock.
they will announce two days start date and end date.you have to hold your stock between these days to get alloted which ever is concerned.
on ex-date the face value of your stock will be converted as per the announcement that made earlier and also the market price will be...
but it may take some time for all of us to get alloted in our dp accounts
(dividend,bonus,rights,anything).please dont blame dps and registrars as they are doing thier best!

govindaraj