Investment Bonus question

HI,

Rememebr days when tv used to says this share is giving bonus ?i wonder what happened now ?

we keep hearing stories of how investment of 10000 is worth 500 cores
in wipro


I always wonder what happened after 2010 ? did company stopeed giving bonus? . i don;t get it

http://www.moneycontrol.com/company-facts/wipro/bonus/W
what happened after 2010 ? no bonus i;s 2016 so why no bonus after 2010 ..

i am noob it;s just question that keeps bothering me

I thought u'd have got an answer by now

Anyway, in short as can be:
When a company makes a lot of profit:
1. It can pay huge dividends from the earnings
as opposed to
2. if Co. needs to recapitalize itself, most likely reason, it issues bonus shares.
This doesn't alter the value of the company.
Co can then used this capital to further expand.

Now specific to Wipro, again most likely,
that was huge growth period of many IT companies.
They were literally compounding their value and they were expanding also at that rate so you could see stock splits and bonuses very frequently.

During the 2008-09 aftermath, IT in general has never recovered. Whatever value increase happened is related to general economy growth but not as an Index leader.
In last few years, forget compounding growth, if they meet YoY, QoQ results consistently its a big deal
so yeah, money has dried up, and this is one of the effects.

travi bhai,you got a finance degree or what?
We can see you have a vast knowledge of anything related to the finance.
(And you say you are just in your 20's)

iske pehle kahi Lecturer the kya?

Arre bhai, confusion of 20's is Vikris bhai not me
College se nikle hue decade uppar hogaya... wife n kid wala pe aap kidhar se who andaza laga rahe ho :rofl:

If u just live outside of ur profession, itna tho seekh hi jaoge
Family business bhi tha pehle, all that.

Another note, ppl think mkt is a gambling den and requires no formal education but its quite the contrary so whenever I get time i'm studying finance and economics & tech.
bcos even though I have a Technical degree, after so many years in the domain all the paths diverge so u need to know everything.
When I sit with my CA, he tells u want to become a CA, I look at his laptop and all the softwares and ask him, aapko kya Engineer ban na hai ? ha ha

Ab ye batao, sar dard mein crocin le lete ho na!!!
phir doctor thodi na ban gaye :lol:

:rofl::rofl::rofl::rofl::rofl:
you are funny man :xD

Thanks i think i got it now ...
but again is same thing for ITC ? godfrey tata motors or the Reliance hehe

I don't follow that closely the splits,bonuses and dividens but look at Eicher motors. Pretty soon they'll either split or bonus etc from 5k to 25k in a couple of years

It helps solve liquidity issues etc so prices in the Inr. 500-5000 give small retailers a chance to balance portfolio.
If I decide to invest 1-2L p.a in stocks, and a single stock costs 25-40k it becomes a problem.
Split to reduce each shares price and bonus to recapitalize.