Prices gap down after bonus issues

pasha

Active Member
#1
Generally, I have observed that the stock price gaps down almost equal to the bonus %, the day after the bonus issue is declared.
This completely wipes out the profit of having the bonus shares, so what's the point? and why does the price gap down?
Have I missed something here?
 
#3
Generally, I have observed that the stock price gaps down almost equal to the bonus %, the day after the bonus issue is declared.
This completely wipes out the profit of having the bonus shares, so what's the point? and why does the price gap down?
Have I missed something here?
There's no such thing like free lunch , my friend .

If a co issues bonus in the ratio 1:1 , and u think u have doubled yr investment overnight, you are missing something

See this thread http://www.traderji.com/equities/9980-help-required-stock-split.html?highlight=agilenthttp://

AGILENT:)
 

pasha

Active Member
#4
Pasha

Are you questioning the logic of "issuing bonus shares" altogether or its seemingly "no impact" on the recepient?

cheers
-m
Actually it does create a tiny upward and shortlived bias, which makes me wonder why anyone would buy into them.

Agilent, I just had a look at your link. Is it really true that there are no bonus issues in foreign markets?
Good point, it's better to think of the "bonus" as a split.
 
#5
Actually it does create a tiny upward and shortlived bias, which makes me wonder why anyone would buy into them.

Agilent, I just had a look at your link. Is it really true that there are no bonus issues in foreign markets?
Good point, it's better to think of the "bonus" as a split.

Of course they do have ...

but they call them splits rather than bonus

AGILENT
 

Similar threads